sebi:ID-6/OCPL/BK/AO/DRK/AKS/EAD-3/302/68-11
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Facts / Headnote
Penalty of Rs. 10,00,000 imposed under Section 15G(i) for violation of Sections 12A(d) and (e) of SEBI Act, 1992
Provisions invoked
- s. 15
- s. 370
- s. 12A
- s. 15G
- s. 15J
- s. 307
- s. 372
Regulations
- Reg. 3
- Reg. 2
- Reg. 2(c)
- Reg. 2(e)
- Reg. 2(h)
- Reg. 33
Parties
- Smt. Bala Kaul
Holding
The noticee, as an insider through her husband Shri V K Kaul, allowed him to trade on her behalf in Orchid Chemicals & Pharmaceuticals Ltd while he had received/access to UPSI about Solrex's strategic investment, thereby violating Sections 12A(d) and (e) of the SEBI Act, 1992 and attracting penalty under Section 15G(i).
Full text
Page 2 of 22 2. Several alerts were generated at the end of National Stock Exchange of India Ltd. (hereinafter referred to as ‘NSE’), and Bombay Stock Exchange Ltd. (hereinafter referred to as ‘BSE’) on 17/3/2008, 31/3/2008, 07/4/2008, 08/4/2008 and 09/4/2008. Based on the discussions in the Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) Surveillance meeting, the scrip was taken up for joint investigation by the Exchanges on which a report was submitted by them on 15/4/2008. Further, SEBI, Integrated Surveillance Department had asked NSE to examine the trading activity in the scrip.
Page 3 of 22 SHOW CAUSE NOTICE, HEARING AND REPLY 5. A Show Cause Notice (herein after referred to as ‘SCN’) dated 08.04.2011 was served on the noticee by “Registered Post Acknowledgement Due” in terms of the provisions of Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 requiring her to show cause as to why an inquiry should not be held against her and why penalty, if any, should not be imposed on her under Section 15G (i) of the SEBI Act. In the said SCN, it was stated / alleged that:
Page 4 of 22 6. Noticee vide her letter dated 27.04.2011 sought extension of time till 31.05.2011 to file a reply to the SCN. As requested by the noticee, vide letter dated 28.04.2011 noticee was granted time till 16.05.2011 to submit the reply. Noticee vide her letter dated 02.05.2011 appointed Amarchand & Mangaldas & Suresh A. Shroff & Co. (hereinafter referred to as ‘AR’) to represent her in the matter.
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Source: SecMarx — sebi:ID-6/OCPL/BK/AO/DRK/AKS/EAD-3/302/68-11. 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.