sebi:IVD/DEL/AO/DRK/AS/EAD-3/183/09-86/2010
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Facts / Headnote
Penalty of Rs. 6,00,000 imposed on the noticee for violation of Section 11C(2) and Section 11C(3)
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 12
Parties
- Divine Entertainment Ltd. (formerly known as Denim Enterprises Limited)
Holding
The noticee violated Section 11C(2) and Section 11C(3) of the SEBI Act, 1992 by failing to comply with summonses issued by the Investigating Authority, and is liable to a penalty of Rs. 6,00,000 under Section 15A(a).
Full text
Page 2 of 8 that the scrip traded below par value at BSE till the end of November, 1999. Subsequently there was a rise in the price of scrip and from January, 2000 onwards both the volumes traded and the price of the scrip increased sharply. The price of the scrip increased from Rs. 7/- on November 1, 1999 to Rs. 267.25/- on March 31, 2000. During the period of investigation, the scrip opened at Rs.7/- on November 1, 1999 reached a high of Rs. 348.20/- on March 8, 2000 and touched a low of Rs. 6.25/- on November 25, 1999.
Page 3 of 8 telephone, mobile & fax nos. of all its directors (both residential and official), all the entities in which its directors hold directorships, all the entities which are either individually/jointly controlled by it or any of its directors, all the entities in which the noticee and /or its director hold 15% of equity capital or more, information about its associate concerns and the copies of the annual report for the years 1998-99, 1999-2000 and 2000-
Page 4 of 8 i. The ARs have submitted that trading in the scrip of Divine Entertainment Ltd. has been suspended since the year 2002 and the company has also closed its operations. Shri Aushim Khetarpal was holding around 14% shares in the company. ii. The ARs have submitted that the noticee could not comply with the summons dated August 17, 2004 as it was received by Mr. Rakesh, an employee of the noticee, who in turn never gave the summons to the noticee. iii. As regards the non compliance of further summonses dated November 05, 2004 and April 19, 2005, the ARs have undertaken to submit a reply for the same. The noticee further undertook to submit a detailed reply to the aforesaid SCN within a period of 15 days.
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Source: SecMarx — sebi:IVD/DEL/AO/DRK/AS/EAD-3/183/09-86/2010. 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.