sebi:IVD-ID1/CSESL-AIFPL/AO/DRK/SS/EAD-3/186-09/89-10
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Facts / Headnote
Penalty imposed on noticee for failure to comply with summonses
Provisions invoked
- s. 24
- s. 15A
- s. 15
- s. 11(3)
- s. 15J
- s. 11C(6)
- s. 12
Parties
- Amazing Investment & Finance Pvt. Ltd.
Holding
The Adjudicating Officer held that Amazing Investment & Finance Pvt. Ltd. violated Sections 11C(2), 11C(3) and 11C(5) of the SEBI Act by failing to comply with five summonses issued by the Investigating Authority, and imposed a penalty of Rs.15,00,000 under Section 15A(a) of the SEBI Act.
Full text
Page 2 of 11 ‘DSE’) and Bangalore Stock Exchange Limited (hereinafter referred to as ‘BgSE’). 3. SEBI noticed substantial divergence in the price volume behavior of the scrip on NSE when compared to that on BSE during the period May 29, 2000 to August 22, 2000. On NSE, the price had increased from Rs.5/- on May 29, 2000 to Rs.106.65/- on July 13, 2000. Subsequently, the price declined to Rs.7.20/- on August 22, 2000. On many days, there were large differences in the price of the scrip and in the traded volume, between NSE and BSE. For instance, on July 13, 2000 when 49,400 shares were traded on BSE only 64 shares were traded on NSE.
Page 3 of 11 7. Both Elite and the noticee had the same address as the corporate office address of CSESL. Shri K. K. Ravindran, the director who was in charge of both the noticee and Elite was also director of European Software Alliances Ltd. (a company belonging to the Lan Eseda group, a group to which CSESL belongs) Shri K.K. Ravindran was also the authorized signatory for both the noticee and European Software Alliances Ltd. Shri Rakesh Kapur, professional director of CSESL had admitted during the investigation proceedings that CSESL may have received monies from both the noticee and Elite. During the period December 1999 to April 2000, CSESL had received about Rs.25.62 lakhs from the noticee and Elite. There were also fund movements between CSESL and European Software Alliances Ltd. Also, on May 08, 1998 CSESL had made preferential allotment to corporate bodies, wherein the noticee appeared as an allotee and it received 10,00,000 shares.
Page 4 of 11 SHOW CAUSE NOTICE, REPLY AND HEARING 10. A Show Cause Notice dated October 17, 2005 (hereinafter referred to as the ‘SCN’) was sent to the noticee through Speed Post Acknowledgment Due (SPAD) in terms of the provision of Rule 4(1) of the Adjudication Rules, seeking reply of the noticee as to why an inquiry should not be held against it in respect of the alleged non-compliance by the noticee for the summonses issued by the Investigating Authority (IA) of SEBI.
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Source: SecMarx — sebi:IVD-ID1/CSESL-AIFPL/AO/DRK/SS/EAD-3/186-09/89-10. 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.