sebi:ID-6/OCPL/VK/AO/DRK/AKS/EAD-3/301/67-11
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Facts / Headnote
Penalty of Rs 50,00,000 imposed on Shri V K Kaul under Section 15G(i) of the SEBI Act, 1992 for violation of Sections 12A(d) and (e) of the 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. 32
Parties
- Shri V K Kaul
Holding
The Adjudicating Officer held that Shri V K Kaul, as an insider, dealt in the shares of Orchid Chemicals & Pharmaceuticals Ltd on behalf of his wife while in possession of UPSI regarding Solrex's strategic investment, thereby violating Sections 12A(d) and (e) of the SEBI Act, 1992, and imposed a penalty of Rs 50,00,000 under Section 15G(i).
Full text
Page 2 of 21 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 21 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 him to show cause as to why an inquiry should not be held against him and why penalty, if any, should not be imposed on him under Section 15G (i) of the SEBI Act. In the said SCN, it was stated / alleged that:
Page 4 of 21 Mangaldas & Suresh A. Shroff & Co. (hereinafter referred to as ‘AR’) to represent him in the matter. 7. The AR vide its letter dated 05.05.2011 requested for inspection as well as copies of all the documents that were relied upon in support of the
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Source: SecMarx — sebi:ID-6/OCPL/VK/AO/DRK/AKS/EAD-3/301/67-11. 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.