sebi:IVD-ID5/ESL-SI/AO/DRK/ASG/EAD3-304/70-2011
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Facts / Headnote
Ex-parte consolidated penalty imposed on the noticee
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 11C(3)
- s. 11C(5)
Regulations
- Reg. 3
- Reg. 4(2)
Parties
- Shiv Impexs
Holding
The Adjudicating Officer imposed a consolidated penalty of Rs. 2,41,00,000 on Shiv Impexs under Section 15HA and Section 15A(a) for violation of Sections 12A(a), (b) and (c) read with Regulations 3(a), (b), (c), (d) and 4(1) and for violation of Section 11C(3). The order was passed ex-parte after the noticee failed to reply to the SCN or appear for hearings.
Full text
Page 2 of 12 2. The Investigation Report of SEBI (hereinafter referred to as ‘IR’) concluded that certain entities had violated SEBI Act/ Rules/ Regulations while dealing in the IPO of ESL. In this regard, it was noted from the findings of the IR that ESL had taken ICD/ loans for a total of ` 4 crores from 5 entities during the period from January 20 to February 05, 2009 and that immediately after receipt of the proceeds of IPO, the loans were re-paid with interest from the proceeds of the issue on February 27, 2009. It was observed in the IR that ESL had informed vide its letters dated May 26, 2010 and July 28, 2010 that the loans were borrowed for meeting the project expenditure. However, It was alleged in the IR that the amounts received from the loans/ ICDs were paid to certain entities, including Shiv Impexs (hereinafter referred to as ‘the noticee’).
Page 3 of 12 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. The SCN was Returned Undelivered by the Postal Authorities with the remark ‘No such company in the address’.
Page 4 of 12 again failed to appear for the final hearing without furnishing any reasons for the same. CONSIDERATION OF EVIDENCE AND FINDINGS
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Source: SecMarx — sebi:IVD-ID5/ESL-SI/AO/DRK/ASG/EAD3-304/70-2011. 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.