sebi:EAD/PM-AA/AO/38/2017-18

SEBI · SEBI · 2017-12-15 · Prasanta Mahapatra, 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

Show Cause Notice disposed of without imposition of any penalty

Provisions invoked

• s. 15I
• s. 15G
• s. 2(77)

Regulations

• Reg. 3(i)
• Reg. 2(h)
• Reg. 12(2)

Parties

• Mrs. Dhanashri Iyengar

Holding

The alleged violation of Regulation 3(i) of the PIT Regulations, 1992 by Mrs. Dhanashri Iyengar was not established because the UPSI ceased to exist on October 3, 2012, well before she sold 2,200 shares of FTIL between November 02, 2012 and November 08, 2012. The Show Cause Notice was disposed of without imposition of any penalty.

Full text

Adjudication Order in respect of Mrs. Dhanashri Iyengar in the matter of FTIL Page 2 of 8 days, impending payment defaults by the members of NSEL and loss of reputation of Promoters and Management of FTIL. It was observed that any news impacting business of NSEL will automatically impact share price of its holding company (i.e. FTIL) and any news impacting credentials of Promoters and Management of FTIL, NSEL and MCX will also impact the share price of FTIL, therefore, suspension of trading by NSEL was a negative news. As per the Investigating Authority, the UPSI came into existence on April 27, 2012, upon the issuance of the SCN to NSEL, by the DCA and it ceased to exist when NSEL suspended trading in all contracts (except e-series contracts) and deferred settlement of all pending contracts on July 31, 2013.

Adjudication Order in respect of Mrs. Dhanashri Iyengar in the matter of FTIL Page 3 of 8 APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order in respect of Mrs. Dhanashri Iyengar in the matter of FTIL Page 4 of 8 The Noticee was thereafter provided a hearing by the Whole Time Member ("WTM") of SEBI.  The WTM had passed an order dated January 31, 2018 disposing the

Source: SecMarx — sebi:EAD/PM-AA/AO/38/2017-18. 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.