sebi:EAD-2/DSR/RG/654/2017
Facts / Headnote
Allegations against the Noticee not established; proceedings disposed of
Provisions invoked
- s. 15
- s. 284
- s. 283
- s. 342
- s. 302(2)
- s. 303(2)
- s. 302
- s. 303
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 3
- SEBI (PFUTP) Regulations, 2003 — 4(1)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(a)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(d)
Parties
- Shri Umesh Khariwala
Holding
The Adjudicating Officer concluded that the violations of Regulation 3, 4(1) and 4(2)(a) and (d) of the PFUTP Regulations are not established against the Noticee, Shri Umesh Khariwala, and disposed of the adjudication proceedings.
Full text
Page 2 of 16 APPOINTMENT OF ADJUDICATING OFFICER 2. I have been appointed as the Adjudicating Officer vide order dated October 26, 2015 under Section 15-I of the SEBI Act, 1992 (hereinafter referred to as the Act) read with Rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the said “Rules”) to inquire into and adjudge the alleged violations of PFUTP Regulations by the Noticee.
Page 3 of 16 (b) Whether the Noticee is liable for monetary penalty as prescribed under Section15 HA of the SEBI Act for the aforesaid violation?
Page 4 of 16 complaint from one Mr. Anil Khanna vide email dated August 13, 2004 regarding alleged fraud in the scrip of KBL. The complainant had stated that the promoters of the company had escaped the country after committing a fraud of over ` 1000 crores. It had been also stated in the said complaint that the company had announced a bonus issue of 2:1 and ` 50 Crores Global Depository Receipt (GDR) issue and had advertised the same in the widely circulated business daily viz. Economic Times (ET). However, in the ET there was also a notice by the Bank of India regarding sale of property of Shri Raj Kumar Basantani who was the main promoter of KBL. It was mentioned in the said complaint that the registered office of KBL had been sealed by various banks, yet the company had advertised that the meeting to consider the GDR issue would be held at its registered office. Further, various other complaints against the company and its promoter / directors were also received.
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Source: SecMarx — sebi:EAD-2/DSR/RG/654/2017. 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.