sebi:EAD-2/DSR/KM/PU/74-75/2014
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Facts / Headnote
Penalty imposed on both Noticees
Provisions invoked
- s. 15
- s. 370
- s. 15H
- s. 12
- s. 15J
- s. 307
- s. 372
- s. 4A
Regulations
- Reg. 12(1)
- Reg. 3
- Reg. 12
- Reg. 2
- Reg. 2(h)
- Reg. 2(c)(i)
Parties
- Mr. Sisir Kumar Saha
- Mr. Soura Sekhar Saha
Holding
Noticee No.1 (Whole Time Director) held to have violated Regulation 3(ii) and Clause 4.2 of Schedule I under Regulation 12(1) of the PIT Regulations and liable under Sections 15G and 15HB; Noticee No.2 (son) held to have violated Regulations 3(i), 3(ii) and 4 and liable under Section 15G. Monetary penalty of Rs.10,00,000 under 15HB plus Rs.20,00,000 under 15G on Noticee No.1 and Rs.20,00,000 under 15G on Noticee No.2 imposed.
Full text
Page 2 of 13 period of unpublished price sensitive information (UPSI) was considered to be from May 21, 2009 to August 06, 2009. It is alleged that the Noticee No.1 being the director of SIPL was privy to the UPSI and traded in the shares of SIPL. Further, he has also communicated or counseled, directly or indirectly, the UPSI to Noticee No.2 who also traded in the shares of SIPL.
Page 3 of 13 Noticees on November 19, 2012 vide letter dated November 01, 2012. Noticee No.1 appeared on behalf of himself and Noticee No. 2, and submitted that the clarification regarding the lock in period of shares that was clarified by SEBI during end of July 2009 as a number of agencies sought clarification on this because of ambiguities and reiterated the written submissions and requested for a lenient view to be taken in the matter. Consequent to his deputation, another AO was appointed who granted another opportunity of personal hearing on August 19, 2013 vide letter dated August 05, 2013. The Noticees vide their common reply dated August 16, 2013 stated that they had submitted all the relevant documents and that they did not wish to attend the said hearing. Consequent to my appointment, I granted another opportunity of personal hearing to the Noticees on December 04, 2013 vide letter dated November 21, 2013 in the interest of natural justice and the same has been delivered to the Noticees. However, the Noticees did not appear for the hearing.
Page 4 of 13 “3. No insider shall— (i) either on his own behalf or on behalf of any other person, deal in securities of a company listed on any stock exchange when in possession of any unpublished price sensitive information; or (ii) communicate or counsel or procure directly or indirectly any unpublished price sensitive information to any person who while in possession of such unpublished price sensitive information shall not deal in securities : Provided that nothing contained above shall be applicable to any communication required in the ordinary course of business or profession or employment or under any law.
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Source: SecMarx — sebi:EAD-2/DSR/KM/PU/74-75/2014. 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.