sebi:EAD-2/AO/37/2012
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Facts / Headnote
Noticee held liable and monetary penalty imposed
Provisions invoked
- s. 15
- s. 15J
- s. 15H
Regulations
- Reg. 7
- Reg. 4
- Reg. 13
- Reg. 3
Parties
- Shri Sheth Nilesh Vinodchandra
Holding
The Noticee violated Regulations 4(1), 4(2)(a), (b), (e) and (g) of PFUTP Regulations, Regulation 7(1) read with 7(2) of SAST Regulations and Regulation 13(1) & 13(3) read with 13(5) of Insider Trading Regulations and was imposed a total monetary penalty of Rs 7,00,000, comprising Rs 5,00,000 under Section 15A(b) and Rs 2,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 15 their entire shareholding in the company to various entities like Cavalier Securities, Right Finstock, Kaustubh Credit and Holdings Ltd. in off-market deals in the month of October 2003 and these entities have either directly offloaded the shares in the market or have transferred it to others who in turn how offloaded them in the market. Shri Sheth Nilesh Vinodchandra (hereinafter referred to as the Noticee) is one of the entities who had received shares from Right Finstock in large quantities and offloaded the same in the market through fraudulent and manipulative trades. The noticee acquired upto 7.69% of the share capital of GAL during the period and later offloaded the shares. The noticee did not make disclosures as required under the provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as the “SAST Regulations”) and SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as the “Insider Trading Regulations”).
Page 3 of 15 and 15 HA of the Act for the alleged violation of the Noticee as mentioned above. Thereafter, SEBI vide order dated January 04, 2012 appointed the undersigned as the AO in the instant matter.
Page 4 of 15 8. The undersigned granted an opportunity of personal hearing to the Noticee on February 28, 2012 vide hearing notice dated February 08, 2012. The hearing notice was duly received by the Noticee himself from the Western Regional Office, SEBI, Ahmedabad, on February 10, 2012. The Noticee did not appear for the hearing.
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Source: SecMarx — sebi:EAD-2/AO/37/2012. 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.