sebi:IVD-ID5/ADPL-HGS/AO/DRK-AKS/EAD3-552/96-2014
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Facts / Headnote
Adjudication proceedings disposed of without penalty; alleged violations held difficult to establish
Provisions invoked
- s. 15
Regulations
- Reg. 3
Parties
- Shri Hastimal Gulabchand Soni
Holding
The alleged violation of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a), (b) and (e) of the PFUTP Regulations, 2003 against Shri Hastimal Gulabchand Soni was held difficult to establish, and the adjudication proceedings under Section 15HA of the SEBI Act were accordingly disposed of without penalty.
Full text
Page 2 of 5 Act’), read with Rule 3 of Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under Section 15 HA of the SEBI Act for the violation of Regulations 3 (a), (b), (c), (d), 4 (1), 4 (2) (a), (b) and (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’) alleged to have been committed by Shri Hastimal Gulabchand Soni (hereinafter referred to as ‘noticee’) and the same was communicated vide proceedings of the Whole Time Member appointing Adjudicating Officer dated 12.04.2013.
Page 3 of 5 • Traded in the scrip of ADPL only for the purpose of investment. 5. Vide personal hearing notice dated 25.09.2013, the noticee was granted an opportunity of hearing on 21.10.2013 at 11:00 am at SEBI Bhavan, Mumbai. However, the noticee failed to attend the said hearing without providing any
Page 4 of 5 • Noticee has carried out trading and investment in equity shares of different companies during the investigation period and his gross volume in the scrip of ADPL during the investigation period was 2,000 shares. • Apart from 4,000 shares that the noticee transferred to his son Shri Dhavalkumar Hastimal Soni, there were no off market transfers in the said scrip. • It is observed from the SCN that total group volume (buy + sell) is greater than the total market volume during the investigation period in the scrip which cannot be the case and there appears to be some error in the data. • Noticee submits that he is a different legal entity than his son and he has nothing to do with the trading carried out by his son in the scrip. Further, his son's total trading volume in the scrip during the investigation period is about 2,51,093 shares whereas noticee has transferred only 4,000 shares. • Noticee had transferred 4,000 shares to his son as loan. On his failure to return the same, noticee received consideration at the relevant time from him.
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Source: SecMarx — sebi:IVD-ID5/ADPL-HGS/AO/DRK-AKS/EAD3-552/96-2014. 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.