sebi:IVD-ID3/DRSL/AO/DRK/AKS/EAD-3/240/06-11
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Facts / Headnote
Penalty imposed ex-parte
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 7(1)
- Reg. 11
- Reg. 199
Parties
- Shri. Harmohan Singh Sabharwal
Holding
The noticee was held to have manipulated price and volumes in the scrip of DRSL in violation of Regulations 3, 4(1) and 4(2)(e) of PFUTP Regulations and to have violated Regulations 7(1) and 7(1A) of SAST Regulations by failing to make timely disclosures, and a consolidated penalty of Rs.10,00,000 was imposed ex-parte.
Full text
Page 2 of 16 2. In view of the rise in price and non-disclosure of the change in shareholding, BSE conducted snap investigation in the scrip of DRSL for the period May 11, 2006 to May 30, 2006 (hereinafter referred to as ‘investigation period’) and observed mainly as follows: • It was observed that the noticee dealt through the stock brokers Dipak G Cholera and Hornic Investment Pvt.Ltd cumulatively purchasing 2,70,392 shares and selling 57,695 shares accounting for 74.49% and 15.89% of the market volume. Hence, the noticee is net buyer for 2,12,697 shares, which accounts for 5.45% of the equity capital of the company. However no disclosures were received from the noticee as required by provision of SEBI (Prohibition of Insider Trading) Regulations, 1992 or SEBI (Substantial Acquisition of Shares and Takeovers) Regulation, 1997.
Page 3 of 16 APPOINTMENT OF ADJUDICATING OFFICER 3. I was appointed as the Adjudicating Officer, (subsequent to the transfer of Shri P.K. Bindlish) vide order dated February 24, 2009 under Section 15 I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’) read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge under Sections 15 HA and 15 A (b) of the SEBI Act, the violation of Regulations 3, 4(1) and 4(2) (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulation, 2003 (hereinafter referred to as ‘PFUTP Regulations’), Regulations 7(1) and 7(1A) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulation, 1997 (hereinafter referred to as ‘SAST Regulations’) alleged to have been committed by the noticee.
Page 4 of 16 of shares crossing 14% of total share capital or voting rights of the company. 5. It is noted from the records that the SCN came back undelivered with remark that “person not staying there”. The aforesaid SCN was also hosted on the SEBI website under the head “Unserved Summons / Notices”. Further, vide letters dated September 15, 2010, noticee’s stock brokers Pragya Securities Pvt. Ltd. (earlier known as Dipak G Cholera) and Hornic Investment Pvt. Ltd. were advised to serve the SCN on the noticee. Hornic Investment Pvt. Ltd. vide its letter dated 21.09.2010 replied that it is not able to trace the noticee while Pragya Securities Pvt. Ltd. replied vide its letter dated 28.09.2010 that it tried to deliver the SCN using all channels namely its sub broker, courier and registered post but the noticee was not traceable.
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Source: SecMarx — sebi:IVD-ID3/DRSL/AO/DRK/AKS/EAD-3/240/06-11. 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.