sebi:EAD/PM-NK/AO/45/2018-19
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Facts / Headnote
Penalty imposed on Noticee
Provisions invoked
- s. 13
- s. 23H
- s. 23J
- s. 23
- s. 16
- s. 29A
- s. 17
- s. 23I
- s. 18(1)
- s. 18
Parties
- Romy Realty Private Limited
Holding
The Noticee violated Section 16 read with SEBI Notification G.S.R 219(E), Section 13, and Section 18 read with Section 2(i) of the SCR Act, 1956 by entering into an off-market transaction that was not a spot delivery contract, and a monetary penalty of Rs. 5,00,000 was imposed under Section 23H.
Full text
Page 2 of 15 transaction from the Noticee, M/s Romy Realty Private Limited (BOID: IN30160410184189). Investigation observed that the Noticee had sold 20,000 shares to Mr. Lalit Dhanuka for a total consideration of Rs. 2,00,000/- @ Rs. 10/- per share, in an off market transaction on July 27, 2012. However, due to non-availability of the demat account no. of the buyer, Mr. Lalit Dhanuka, the securities could not be transferred at the time of the contract and the same was transferred on September 17, 2012 when the demat account details were provided by the buyer. Investigation further observed that the payment of consideration of Rs. 2,00,000/- (Rupees Two Lacs only) towards the above purchase was made on October 29, 2012. Investigation further, observed that the buyer during investigation, had admitted the purchase of 20,000 shares of TFL in an off market transaction from the Noticee on July 27, 2012 @ Rs. 10/- per share and paid the consideration of Rs. 2,00,000/- towards the aforesaid purchase of shares on October 29,
Page 3 of 15 18 of Securities Contracts (Regulation) Act, 1956 read with Section 2(i) of Securities Contracts (Regulation) Act, 1956. Copies of all the documents relied upon in issuing the SCN were provided to the Noticee along with the SCN.
Page 4 of 15 CONSIDERATION OF ISSUES AND FINDINGS 5. I have carefully perused the charges levelled against the Noticee in the SCN and the material/documents available on record. The issues that arise for consideration in the present case are: 1) Whether the Noticee has violated provisions of Section 16 of Securities Contracts (Regulation) Act, 1956 read with SEBI Notification G.S.R 219 (E) dated March 2, 2000, Section 13 and Section 18 of Securities Contracts (Regulation) Act, 1956 read with Section 2(i) of Securities Contracts (Regulation) Act, 1956? and 2) Do the violations, if any, on the part of the Noticee attract monetary penalty under section 23H of the Securities Contracts (Regulation) Act,1956? 3) If yes, then what would be the monetary penalty that can be imposed upon the Noticee, taking into consideration the factors mentioned in Section 23 J of the SCR Act,1956?
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Source: SecMarx — sebi:EAD/PM-NK/AO/45/2018-19. 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.