sebi:EAD-8/KS/VB/AO/163/2018-19
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Facts / Headnote
Penalty of Rs. 10,00,000 imposed under Section 15HB for failure to comply with SEBI Order dated March 24, 2017
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15J
- s. 15F
Parties
- Amadhi Investment Limited
Holding
The Noticee failed to comply with SEBI Order dated March 24, 2017 directing disgorgement of Rs.77,77,296 with interest, and a monetary penalty of Rs. 10,00,000 under Section 15HB of the SEBI Act was imposed on the Noticee.
Full text
Page 2 of 10 ii) Amadhi Investments Limited shall disgorge the unlawful gain of Rs.77,77,296/-. It shall also pay the interest on this unlawful gain at the rate of 6% (six percent) per annum for 4 ½ years (September 2005 – March 2010, i.e. from the date of listing of the IPOs of Sasken and FCS till this Order), amounting to Rs.20,99,870. It shall thus disgorge a total amount of Rs.98,77,166 within 45 (forty five) days from the date of this Order. iii) In case the aforesaid amount is not paid within the specified time, it shall be restrained from buying, selling or dealing in securities market in any manner whatsoever or accessing the securities market, directly or indirectly, for a further period of seven years.
Page 3 of 10 i. Amadhi Investments Limited (PAN: AAACA7300E) is restrained from buying, selling dealing in securities in any manner whatsoever or accessing the securities market, directly or indirectly, for a period of 10 (ten) years; ii. Amadhi Investments Limited shall disgorge the unlawful profit of Rs.77,77,296/- (Rupees Seventy Seven Lakh Seventy Seven Thousand Two Hundred and Ninety Six Only) with simple interest at the rate of 10% per annum from September 2005 ( i.e. the date of listing of IPOs of FCS and Sasken) till the date of payment. iii. In case the aforesaid amount is not disgorged within 45 days from the date of this order, Amadhi Investments Limited shall be restrained from buying, selling or dealing in securities market in any manner whatsoever or accessing the securities market, directly or indirectly, for a further period of 5 (five) years without prejudice to SEBI’s right to recover the aforesaid amount with interest.
Page 4 of 10 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 7. A Show Cause Notice (hereinafter referred to as ‘SCN’) dated May 04, 2018 was issued to the Noticee under Rule 4 of the Adjudication Rules to show cause as to why an inquiry should not be initiated against the Noticee and penalty, if any, be not imposed on them under the provisions of Section 15HB of the SEBI Act for the alleged violation by the Noticee of the non-compliance of the directions issued to them by SEBI vide Orders dated March 24, 2017.
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Source: SecMarx — sebi:EAD-8/KS/VB/AO/163/2018-19. 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.