sebi:EAD-2/21-27/2012
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Facts / Headnote
PFUTP charges against Group-I and Group-II Noticees dropped for lack of evidence; GRML held liable for violation of Insider Trading Regulations and penalized
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 13
Parties
- Shri Yashwant Rampuria
- Shri Pankaj Sachan
- Shri Shashi Jain
- Shri Ashok Agarwal
- M/s. G.R. Magnets Ltd
- J.R.P. Holding Ltd.
- Shri Parasmal Rampuria
Holding
The Adjudicating Officer held that the allegations of violation of PFUTP Regulations against Group-I and Group-II Noticees were not established beyond reasonable doubt and dropped those charges, but found GRML liable for failing to make disclosures under Regulation 13(3) read with 13(5) of the Insider Trading Regulations and imposed a penalty of Rs. 5,00,000.
Full text
Page 2 of 14 which were false and misleading and aimed at creating artificial demand for the scrip in the market. Shri Yashwant Rampuria, Shri Pankaj Sachan, Shri Shashi Jain and Shri Ashok Agarwal (hereinafter referred to as ‘Group-I Noticees’) were the directors of the company during the period when such announcements were made. M/s. G.R. Magnets Ltd (GRML) - promoter of ZSL, and J.R.P. Holding Ltd. (JRPH) - an associate of GRML, allegedly off- loaded shares after the said announcements in a fraudulent and manipulative manner. Shri Parasmal Rampuria, father of Shri Yashwant Rampuria, was director of GRML during the investigation period. GRML, JRPH and Shri Parasmal Rampuria are hereinafter together referred to as ‘Group-II Noticees’. It was alleged that the Group-I and Group-II Noticees allegedly violated provisions of Regulations 3 (b), 3 (c), 3 (d), 4 (1), 4 (2) (e) and 4 (2) (r) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations’). Further, GRML allegedly failed to make disclosures as required under Regulation 13 (3) read with 13 (5) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as the ‘Insider Trading Regulations’).
Page 3 of 14 of the provisions of Regulation 13 (3) read with 13 (5) of the Insider Trading Regulations by GRML. SEBI vide order dated January 04, 2012 appointed the undersigned as the AO in these matters.
Page 4 of 14 7. The SCNs were duly delivered to the Group-I & II Noticees and Shri Yashwant Rampuria, Ashok Agarwal and JRPH submitted their replies dated June 07, 2010, July 09, 2010 and August 04, 2010 respectively. After considering the
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Source: SecMarx — sebi:EAD-2/21-27/2012. 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.