sebi:EAD-2/AO/56/2012
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Facts / Headnote
Penalty imposed on the Noticee for violations of PFUTP, SAST and Insider Trading Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
- Reg. 13
Parties
- Cavalier Securities Ltd.
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) and 10 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 ₹37,00,000 was imposed.
Full text
Page 2 of 17 Cavalier Securities Ltd. (hereinafter referred to as the Noticee), Right Finstock Private Ltd., Kaustubh Credit and Holdings Pvt. 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. The Noticee received shares from promoters, persons acting in concert (hereinafter referred to as PACs) and other shareholders of GAL in large quantities and offloaded the same in the market through fraudulent and manipulative trades thereby aiding and abetting the Promoters, PACs and other shareholders. It acquired over 15% of the share capital of GAL at two instances during the investigation period and later offloaded the shares. The Noticee neither made any public announcements nor 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 17 Appointment of Adjudicating Officer 4. SEBI vide office note dated April 02, 2009 ordered adjudication proceedings and appointed Smt Asha Shetty as the Adjudicating Officer (AO) to inquire into and adjudge under Section 15 A (b), 15 H 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 17 inflated unaudited quarterly results by the GAL. The Noticee allegedly failed to make public announcements and disclosures as required under the SAST Regulations and Insider Trading Regulations.
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Source: SecMarx — sebi:EAD-2/AO/56/2012. 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.