sebi:BS/AO-25/2007

SEBI · SEBI · 2005-02-04 · Biju. S, Adjudicating Officer

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 on the noticee for failure to furnish information to SEBI's Investigating Authority

Provisions invoked

• s. 11
• s. 15A
• s. 15
• s. 15J

Parties

• Shri Rajkumar Dinesh Masalia

Holding

Shri Rajkumar Dinesh Masalia failed to provide necessary information to the Investigating Authority of SEBI in response to the summons dated January 23, 2006, and a penalty of Rs. 50,000 was imposed under Section 15A(a) of the SEBI Act, 1992.

Full text

2 5. The noticee attended the hearing on November 23, 2006 and submitted the following a. The person taking care of all the activities had left the office, so the information could not be submitted immediately. b. The said information was submitted vide letter dated February 4, 2005. c. Any further information in the matter shall be submitted as and when the same is called for.

3 c. The reasons for buying the shares of a company which has continuously shown a dismal performance over a period of time, at a high price which ranged from Rs.84 to Rs.101. d. The overall gains or loss incurred in these transactions. e. Whether the noticee is still holding the shares of this company? If yes, details thereof. f. Details of entering into any off market transactions in the scrip. When, with whom and for how many shares? g. The demat account statement for the period from 1st January 2004 to 30th September, 2004.

4 that it referred to the above mentioned reply of the noticee and required further clarifications as follows: a. Give reasons for buying huge quantity of shares of a company at a very high price, which had continuously shown a dismal performance over a period of time. b. It is observed that the major selling clients had purchased the shares from DPS Shares & Securities Pvt. Ltd. in the year 2003 in physical form through off-market deals at a very nominal price. During the investigation period, the same were sold at very high prices to the noticee and other clients who traded through DPS and were related firm. Please furnish reasons for buying the scrip and offer comments regarding the pattern of trading. Also give details of noticee’s current holding in the scrip. c. In your reply, it has been mentioned therein that you have transferred the balance shares to your friend’s account as he wanted the shares as loan. You are advised to provide full details along with the documentary evidence of all the transfers from your account to different accounts and the loans as mentioned above.

Source: SecMarx — sebi:BS/AO-25/2007. 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.