sebi:EAD/BJD/NJMR/106/2017-18
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Facts / Headnote
Allegations established; penalty imposed under Section 15HA of SEBI Act
Provisions invoked
- s. 15
- s. 12A
- s. 12
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 3(a)
- Reg. 2(1)
- Reg. 57
- Reg. 60
- Reg. 57(1)
- Reg. 57(2)
- Reg. 2(1)(b)
- Reg. 47
- Reg. 55
Parties
- Sanjay Tibrewala
Holding
The Noticee, Sanjay Tibrewala, promoter/director of Fineotex Chemical Ltd., was found to have violated Section 12A(a),(b),(c) of the SEBI Act read with Regulations 3(a)-(d) and 4(1), 4(2)(c), 4(2)(k) of the PFUTP Regulations, and Regulations 57(1), 60(4)(a), 60(7)(a) and Clause 2(XVI)(B)(2) of Part A of Schedule VIII read with Regulation 57(2)(a) of the ICDR Regulations, by indirectly funding two HNI applicants to create artificial demand for the FCL IPO. A penalty of ₹25,00,000 was imposed under Section 15HA of the SEBI Act.
Full text
Adjudication Order in the matter of Fineotex Chemical Ltd., Page 2 of 23 Regulations 3 (a) (b) (c) (d) read with Regulation 4 (1) 4 (2) (c) and 4 (2) (k) of SEBI (PFUTP) Regulations.
Adjudication Order in the matter of Fineotex Chemical Ltd., Page 3 of 23 c) The details of trading by the aforesaid HNIs on the first day of trading is tabulated hereunder.
Adjudication Order in the matter of Fineotex Chemical Ltd., Page 4 of 23 through Nimai Infrastructure on the same day on which the entity received consideration of the above shares sold. On seeking comments, Mahesh Kanakia, vide letter dated 18/06/2015, replied that he is a director in Niami Infrastructure Pvt., Ltd., and he was keen to apply in the IPOs of certain Companies including FCL. Further, he stated that his company had received ` 24 lacs as advance from Sanjay Exports and he took unsecured loan from his company and applied in the IPO of FCL, while denying that he took money from Sanjay Exports for applying in the IPO of FCL.
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Source: SecMarx — sebi:EAD/BJD/NJMR/106/2017-18. 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.