sebi:EAD-6/PM-AB/49/2018-19
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Facts / Headnote
Noticee held liable and monetary penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 200
- Reg. 4(2)(t)
Holding
The Noticee, as director of ABDL which operated an unregistered collective investment scheme, violated Reg. 4(2)(t) of the PFUTP Regulations and is liable under Section 15HA of the SEBI Act; a monetary penalty of Rs. 25,00,000 was imposed.
Full text
Page 2 of 5 SEBI initiated adjudication proceedings against the Noticee under Section 15HA of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”), for the alleged violation of Reg. 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations 2003 (hereinafter referred to as "PFUTP Regulations").
Page 3 of 5 10. The allegation against the Noticee is that he had mobilized money/funds by sponsoring or causing to be sponsored or carrying on or causing to be carried on any collective investment scheme and has violated Reg. 4(2)(t) of the PFUTP Regulations which states as under:
Page 4 of 5 Penalty for fraudulent and unfair trade practices. 15HA. If any person indulges in fraudulent and unfair trade practices relating to securities, he shall be liable to a penalty which shall not be less than five lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of such practices, whichever is higher.
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Source: SecMarx — sebi:EAD-6/PM-AB/49/2018-19. 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.