sebi:BM/AO-130/2010
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty imposed for violation of sections 11C(2) and 11C(3) of SEBI Act; allegation under section 11C(5) not established
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 12
Parties
- Krishna Investments
Holding
The Noticee was held to have violated sections 11C(2) and 11C(3) of the SEBI Act by failing to furnish information sought by the Investigating Authority, but the allegation of violation of section 11C(5) was not established. A penalty of Rs. 3,00,000 was imposed under section 15A(a) of the SEBI Act.
Full text
2 and clients suspected to be connected or related to Nirma group. However it was observed that these brokers and clients were either not furnishing the desired information or giving incomplete or even incorrect information. Summons was therefore issued by the Investigating Authority of SEBI (hereinafter referred to as “IA”) to certain entities seeking information relating to their trading in the scrip of GHCL.
3 7. The Noticee vide letter dated August 11, 2010 requested for one months time to collect the information sought by the IA and replied to the SCN stating interalia the following: ¾ We had already communicated the facts about our inability to provide the data due to closure of business in 1998 vide our letter dated 7th Nov 2003 and also asked your good office to send us specific queries for the matter so as to enable us to collect information from our clients. The same stand we had reiterated to your summons dated 3rd Nov 2004 and again requested for specific queries vide our letter dated 09th Nov 2004. After that we have not
4 CONSIDERATION OF ISSUES AND FINDINGS 12. I have carefully examined the SCN, the reply of the Noticee and the documents available on record. I observe that the allegations against the Noticee are as follows: a) The Noticee failed to cooperate and appear before the IA and did not provide information/documents sought by the IA pertaining to the trading the scrip of GHCL during the investigation.
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Source: SecMarx — sebi:BM/AO-130/2010. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.