sebi:IVD-ID-3/KBL/VH/AO/DRK/AS/EAD-3/138/09-41/2010
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Facts / Headnote
Penalty of Rs. 30,00,000 imposed on noticee
Provisions invoked
- s. 15
- s. 11B
- s. 15H
- s. 15J
Regulations
- Reg. 3
Parties
- Shri Vinod Hingorani
Holding
The noticee, as Chairman of KBL, violated Regulations 3, 4(1), 4(2)(f), 4(2)(k) and 4(2)(r) of the SEBI PFUTP Regulations, 2003 and is liable to penalty under Section 15HA of the SEBI Act, 1992. A penalty of Rs. 30,00,000 was imposed on Shri Vinod Hingorani.
Full text
Page 2 of 17 2. Further, SEBI, vide its interim order dated September 30, 2004, had issued 11B directions restraining 58 entities who are either promoters, directors, major shareholders of KBL, Adam Comsof Ltd. (ACL) and Soundcraft Industries Ltd. [hereinafter referred to as SIL] or major sellers in the said scrips and the entities related to them, from buying, selling or dealing in any other manner in the shares of KBL, ACL and SIL till the investigations are completed. The Chairman, SEBI passed order dated February 18, 2005 confirming earlier order dated September 30, 2004 and further directed that the order dated September 30, 2004 shall continue until further orders. Shri Vinod Hingorani, Chairman of KBL (hereinafter referred to as the noticee) was also one of the persons against whom the
Page 3 of 17 3 Shri R K Maheshwari Additional Director June, 29 2003 Continues 4 Shri Aspi B Bhesania Additional Director June, 29 2003 Continues
Page 4 of 17 9. The aforesaid SCN stated that the Greater Bombay Co-operative Bank Ltd. had received recovery certificate on July 27, 2004 and the registered office of KBL i.e. Narayan Building, 2nd Floor, 23, L.N. Road, Dadar (E), Mumbai – 400 014 was sealed by the Office of the Recovery and Sales Officer of the Co-operative Department, Mumbai (Government of Maharastra). However, it was observed that KBL vide its letter dated July 29, 2004 had intimated BSE that it would convene a board meeting on August 03, 2004, for considering various proposals interalia including considering issue of bonus shares. The letter was signed by Shri Vinod Hingorani, Chairman of KBL. Again, KBL vide an unsigned letter dated August 03, 2004, sent to BSE with a copy of the audited results as on June 30, 2004 stated that board had decided to declare bonus shares in the ratio of 2:1, which was duly approved by the Board of Directors in their meeting held on August 03, 2004, at the registered office of the company and simultaneously issued an advertisement on the August 04, 2004 in The Economic Times (ET) publishing the audited financial results for the quarter ended June 30, 2004.
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Source: SecMarx — sebi:IVD-ID-3/KBL/VH/AO/DRK/AS/EAD-3/138/09-41/2010. 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.