sebi:BM/AO-80/2012
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Facts / Headnote
Penalty imposed on Noticee for non-compliance with summons
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 12
Parties
- Kusum Deepak Rathod
Holding
The Noticee, Kusum Deepak Rathod, was held to have violated sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with summonses issued by the Investigating Authority, and a monetary penalty of Rs. 8,00,000 was imposed under section 15A(a) of the SEBI Act.
Full text
Page 2 of 11 2. The role of the brokers and the entities that had traded in the scrip of EL was scrutinized during the investigation period. It was observed during the investigation that through collusion with the brokers and its clients, shares of EL were transacted in such a manner that led to creation of artificial volumes in the scrip and was designed to create a false market leading to significant price movement and increase in volume.
Page 3 of 11 APPOINTMENT OF ADJUDICATING OFFICER 5. Mr. Piyoosh Gupta was appointed as Adjudicating Officer vide order dated September 17, 2007 under section 15 I of SEBI Act read with rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations of SEBI Act committed by the Noticee.
Page 4 of 11 said SCN. While the proceedings were in progress Noticee applied for consent dated February 14, 2008 to SEBI. Thereafter, the instant adjudication proceedings were kept in abeyance till the culmination of the consent order proceedings. Subsequently the High Powered Advisory Committee, did not accept the consent terms proposed by the Noticee and the same was communicated to the Noticee vide letter dated April 23, 2009. Thereafter, the instant adjudication proceedings which were kept in abeyance commenced forthwith.
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Source: SecMarx — sebi:BM/AO-80/2012. 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.