sebi:IVD-ID5/ESL-AS/AO/DRK/ASG/EAD3-297/63-2011
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty imposed on the noticee for violation of PFUTP Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 2(1)
- Reg. 3(a)
Parties
- Shri Anurag S. Saboo
Holding
The noticee was held to have failed to comply with Regulations 3(a), 3(b) and 4(1) of the PFUTP Regulations, 2003 by applying in the IPO of ESL through his stock broker in the stock broker's name, and a penalty of Rs. 50,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 15 in the IPO of ESL. In this regard, it was noted from the findings of the IR that Transparent Shares and Securities Pvt. Ltd. (hereinafter referred to as ‘TSSPL’) which is a SEBI registered stock broker having membership with BSE and NSE, had applied in the IPO of ESL in its own name on behalf of its clients including the noticee. TSSPL had informed that it had applied for 1,60,000 shares on its own name in the IPO of ESL on behalf of four clients as follows: • Anurag S. Saboo
Page 3 of 15 seeking reply of the noticee as to why an inquiry should not be held against the noticee in respect of the violations alleged to have been committed by the noticee.
Page 4 of 15 behalf. The only reason for the noticee to apply in the IPO through his stock broker was paucity of time owing to late decision taken by him to apply in the IPO of ESL. If he had time to write the letter to his sock broker on February 09, 2009 he would have as well made the application in his own name. vi. If the noticee had plan or motive to bypass the KYC norms then he would not have ratified the transaction by the broker vide his letter dated February 12, 2009, he would have paid the broker in cash so that his account would not reflect the debit, he would have back dated the said request letter, and would have requested the broker to sell the shares from his own account and taken the sale proceeds in cash. vii. The noticee had decided to invest in the IPO of ESL on the closing day and therefore accordingly requested his stock broker to debit his account in pursuance of the application made by the stock broker. Further, as the stock broker had applied, the shares were credited to his account and as per instruction, the application money was debited from the noticee’s account. Due to paucity of time the noticee was unable to make the direct application. viii. The noticee quoted the BSE’s investigation Report which states that prima-facie no connection/ relation of any major client with company/ promoter/ director could be established.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:IVD-ID5/ESL-AS/AO/DRK/ASG/EAD3-297/63-2011. 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.