sebi:ISD/AO/DRK/BM/EAD-3/345/11/2013
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Facts / Headnote
Penalty imposed on noticee for non-compliance with SEBI directions
Provisions invoked
- s. 11B
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 11
Parties
- Shri Shadilal Chopra
Holding
The noticee failed to comply with SEBI's directions to pay disgorgement of ₹90,03,484 and is liable to penalty under Section 15HB of the SEBI Act. A penalty of ₹48,26,500 was imposed on the noticee.
Full text
Page 2 of 12 records it is noted that, the said order of the Hon'ble SAT was challenged by the noticee by filing an appeal before Hon’ble Supreme Court of India. The Hon’ble Supreme Court did not find merit in the appeal and the same was dismissed in limini on April 23, 2010. However, the noticee failed to pay the amount of ` 90,03,484 even after dismissal of his appeal by the Hon’ble Supreme Court, which was observed to be non-compliance of the
Page 3 of 12 a) The noticee had not indulged in any fraudulent or unfair trade practice and did not carry out any illegitimate or non genuine trade or made any disproportionate gain or took unfair advantage from the transaction undertaken by him. The dealings of the noticee did not cause any loss to any investor nor were there any complaints lodged against him. b) The noticee had preferred to restrain himself 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 five years beyond a period of 45 days from the date of SEBI order dated August 10, 2009, instead of paying an amount of ` 90,03,484/- within 45 days from the date of the said SEBI order in compliance with the said SEBI order. c) The order dated August 10, 2009, passed by the SEBI directing him to pay an amount of ` 90,03,484/- has put him in a serious state of shock. The noticee is a senior citizen aged more than 80 years and in a bad health condition.
Page 4 of 12 noticee, during the hearing undertook to submit a detailed reply to the SCN for which he was granted two weeks' time. Accordingly, the noticee vide his letter dated 22nd September, 2011 filed his detailed reply and submitted the following:-
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Source: SecMarx — sebi:ISD/AO/DRK/BM/EAD-3/345/11/2013. 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.