sebi:BM/AO-48/2012
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Facts / Headnote
Penalty imposed on the Noticee for failure to comply with summonses issued by SEBI's Investigating Authority
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 12
Parties
- Dilip S. Mehta
Holding
The Noticee violated Sections 11C(2), 11C(3) and 11C(5) of the SEBI Act by failing to comply with summonses issued by the Investigating Authority, and is liable for a penalty of Rs. 6,00,000 under Section 15A(a) of the SEBI Act.
Full text
Page 2 of 8 2. During the investigation it was observed that one Ms. Sangeeta Jayram Sawant, was the director of 30 companies that were connected to the promoters which were buying and selling shares of BoR worth crores of rupees, and she was also an employee of the Mumbai based Chartered Accountancy firm, M/s Dilip S. Mehta &Co. In this regard, in order to examine the role of Dilip S Mehta, if any, summonses were issued by the Investigating Authority, SEBI (hereinafter referred to as 'IA') to Dilip S Mehta (hereinafter referred to as 'the Noticee'), the Proprietor of Dilip S Mehta & Co. under Sections 11 C (3) and (5) of SEBI Act for information/comments and to present himself in person.
Page 3 of 8 on July 19, 2012. However, the hearing was adjourned and was rescheduled for September 20, 2012, and the Noticee was informed of the same vide letter dated September 4, 2012. The Noticee appeared for the hearing on the scheduled date, and made submissions before me. The Noticee, vide letter dated September 20, 2012, filed additional written submissions. The
Page 4 of 8 Investigation. 11C. (1) …. (a) ….. (b) ….. (2) Without prejudice to the provisions of sections 235 to 241 of the Companies Act, 1956(1 of 1956), it shall be the duty of every manager, managing director, officer and other employee of the company and every intermediary referred to in section 12 or every person associated with the securities market to preserve and to produce to the Investigating Authority or any person authorised by it in this behalf, all the books, registers, other documents and record of, or relating to, the company or, as the case may be, of or relating to, the intermediary or such person, which are in their custody or power. (3) The Investigating Authority may require any intermediary or any person associated with securities market in any manner to furnish such information to, or produce such books, or registers, or other documents, or record before it or any person authorised by it in this behalf as it may consider necessary if the furnishing of such information or the production of such books, or registers, or other documents, or record is relevant or necessary for the purposes of its investigation. (4) … (5) Any person, directed to make an investigation under sub-section (1), may examine on oath, any manager, managing director, officer and other employee of any intermediary or any person associated with securities market in any manner, in relation to the affairs of his business and may administer an oath accordingly and for that purpose may re
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Source: SecMarx — sebi:BM/AO-48/2012. 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.