sebi:CO/ISD/1786/29/2008
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Facts / Headnote
Consent settlement - proceedings under Section 11 and 11B disposed of and ex parte ad interim directions dated April 27, 2006 revoked as against the applicant; adjudication to be disposed of by separate order
Provisions invoked
- s. 11
- s. 11C
Parties
- Nimisha Kadakia
Holding
This consent order disposes of the proceedings under Section 11 and 11B of the SEBI Act, 1992 against Nimisha Kadakia and revokes the directions in the ex parte ad interim order dated April 27, 2006 to the extent against her, upon disgorgement of Rs.2,65,790, payment of Rs.1,34,210 as settlement charges and an additional voluntary ban of three months.
Full text
1 of 2 CO/ISD/1786/29/2008 BEFORE THE SECURITIES AND EXCHANGE BOARD OF INDIA, MUMBAI CONSENT ORDER ON THE APPLICATION SUBMITTED BY NIMISHA KADAKIA IN THE MATTER OF IRREGULARITIES RELATING TO INITIAL PUBLIC OFFERINGS
2 of 2 4. For the sole purpose of settling the matter on hand and without admission or denial of guilt on the part of the applicant to the finding of fact or conclusion of law, the applicant has remitted a sum of Rs.4,00,000/- (Rupees Four Lakh only) vide Demand Draft No.223400 dated July 31, 2008 drawn on HDFC Bank, Mumbai towards the terms of the consent in the matter.
1. As a part of on going surveillance activity by SEBI into the various aspects of working of securities market, SEBI launched an investigation under Section 11C of the SEBI Act to look into the dealings in the shares issued through Initial Public Offerings (IPOs) before the shares are listed on the Stock Exchanges. The investigation revealed that a large number of dematerialized accounts with common addresses had been opened in the name of benami or fictitious entities and/or persons with a view to cornering the shares meant for retail investors. A few financiers provided money for making IPO applications in fictitious/benami names. On noticing these irregularities, SEBI had passed an ad interim ex parte Order dated April 27, 2006 directing the entities/ persons including the applicant who were alleged to have been responsible for the irregularities not to buy, sell or deal in securities market including IPOs, directly or indirectly, till further
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Source: SecMarx — sebi:CO/ISD/1786/29/2008. 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.