sebi:IVD-ID3/LDAE/AO/DRK/AKS/EAD-3/-09/-10
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Facts / Headnote
Adjudication proceedings disposed of; violation not established
Provisions invoked
- s. 15
- s. 15H
Regulations
- Reg. 4
- Reg. 4(2)
- Reg. 4(2)(f)
Parties
- Shri Lalit Dua
Holding
The allegation that Shri Lalit Dua violated Regulation 4(2)(f) of the PFUTP Regulations, 2003 by inducing investor interest in the scrip of Triton Valves Ltd. while his associated entity Consolidated Securities Ltd. offloaded shares, was not established, and the adjudication proceedings were disposed of.
Full text
Page 2 of 20 2. Prima-facie, a distinct modus operandi was noticed in the conduct of the notiocee. The notiocee used to disseminate company favorable articles in media on frequent basis projecting a bright future of companies whose shares are thinly traded. Thereafter, in contrast to the recommendations, noticee’s associated entities used to offload shares (purchased prior to the recommendations) of such companies on the back of induced investor interest created by noticee’s recommendations.
Page 3 of 20 SHOW CAUSE NOTICE, HEARING AND REPLY 5. A Show Cause Notice (herein after referred to as ‘SCN’) dated December 16, 2009 was served on the noticee by “Registered Post Acknowledgement Due” in terms of the provisions of Rule 4 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 requiring him to show cause as to why an inquiry should not be held against him and why penalty, if any, should not be imposed on him under Section 15HA of the SEBI Act. In the said notice, it was alleged that the noticee had induced investor interest in the scrip of TVL and noticee’s associated entity, CSL had offloaded shares on the back of the induced investor interest which has led to the violation of PFUTP Regulations.
Page 4 of 20 matter. The noticee vide letter dated 10.03.2010, was informed that the documents sought by him are not relevant for him as the SCN was not based on those documents.
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Source: SecMarx — sebi:IVD-ID3/LDAE/AO/DRK/AKS/EAD-3/-09/-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.