sebi:EAD-2/AO/134-139/2013
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Facts / Headnote
Penalty of Rs. 25,00,000 on Noticee No.1 and Rs. 15,00,000 on Noticee No.2 under Section 15A(a) for violation of Section 11C(2) and 11C(3); allegations against Noticee No.3 to 5 not established and proceedings against them disposed off; proceedings against Noticee No.6 abated due to death.
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 19
- s. 11(2)
- s. 15T
- s. 15J
- s. 11C
- s. 12
- s. 18
Parties
- Rich Universe Network Ltd. (Noticee No. 1)
- Shri Shashwat Agarwal (Noticee No. 2)
- Noticee No. 3
- Noticee No. 4
- Noticee No. 5
- Noticee No. 6 (deceased)
Holding
Noticee No.1 and Noticee No.2 violated Section 11C(2) and 11C(3) by failing to comply with Summon No. OW/24795/2011 dated August 01, 2011 and were penalized Rs.25,00,000 and Rs.15,00,000 respectively under Section 15A(a). The case against Noticee No.3 to 5 was not established and proceedings against Noticee No.6 abated on death.
Full text
Page 2 of 11 2. The investigation revealed that the shares of the Noticee No.1 opened at Rs 56.75 on February 01, 2010 and reached a high of Rs 119.90 on September 02, 2010 and closed at Rs 111.80 on September 24, 2010. A group of entities has indulged into circular trading, created artificial volume and influenced the price of the shares of the Noticee No. 1 during the investigation period. In order to further analyze the violations, if any, committed by the several entitles, the Investigating Authority of SEBI issued a Summon to Noticee No. 1 and 2 requiring them to provide certain information documents, which they failed to furnish and thereby hampered the investigations.
Page 3 of 11 (3)The Investigating Authority may require any intermediary or any person associated with securities market in any manner to furnish such information to, or produce such books, or registers, or other documents, or record before it or any person authorised by it in this behalf as it may consider necessary if the furnishing of such information or the production of such books, or registers, or other documents, or record is relevant or necessary for the purposes of its investigation.
Page 4 of 11 which are relevant to the allegations as referred to in the SCN, are mentioned below: (i) Noticee No. 1 & 2 submitted that they have prayed the Investigating Authority through their letter dated September 07, 2011 to provide the copy of order passed by the Board/SEBI under section 11 C (1) SEBI Act for conducting investigation. However, instead of providing a copy of the same, the concerning officer informed us that Investigating Authority has been appointed by the Competent Authority to investigate the matter.
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Source: SecMarx — sebi:EAD-2/AO/134-139/2013. 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.