sebi:EAD-2/AO/40/2012
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Facts / Headnote
Monetary penalty imposed on the Noticee
Provisions invoked
- s. 15
- s. 15J
- s. 15H
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 4
- Reg. 13
- Reg. 3
- Reg. 4(1)
Holding
The Noticee was held liable for violating Regulations 4(1), 4(2)(a), (b), (e) and (g) of the PFUTP Regulations, Regulation 7(1) read with 7(2) of the SAST Regulations, and Regulation 13(1) & 13(3) read with 13(5) of the Insider Trading Regulations, and a total monetary penalty of Rs. 12,00,000 was imposed (Rs. 10,00,000 under Section 15 HA and Rs. 2,00,000 under Section 15 A (b)).
Full text
Page 2 of 15 company to various entities like Cavalier Securities Ltd., Right Finstock Private Ltd., Kaustubh Credit and Holdings Pvt. Ltd. (hereinafter referred to as the Noticee) 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 offloaded them in the market through fraudulent and manipulative trades. The Noticee acquired more than 5% 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 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. Since the SCN was served by affixture, the hearing notice was also affixed at the last known address of the Noticee on February 14, 2012. The Noticee did not appear for the hearing.
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Source: SecMarx — sebi:EAD-2/AO/40/2012. 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.