sebi:IVD-ID6/KSERA-SP/AO/DRK/ASG/EAD3-160-2009/63-2010
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Facts / Headnote
Penalty imposed on the noticee for fraudulent and unfair trade practices
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Sunil Purohit
Holding
The noticee Sunil Purohit violated Regulations 4(1) & 4(2)(a), (b), (e) and (g) of the PFUTP Regulations, 2003 by engaging in circular and synchronized trading in the scrip of KSERA, and a penalty of Rs. 4,00,000/- was imposed under Section 15HA of the SEBI Act, 1992. The allegation of reversal of trades against the noticee was not established.
Full text
Page 2 of 12 3. SEBI conducted an investigation into the trading in the scrip of KSERA, during the period from May 02, 2005 to July 1, 2005 (hereinafter referred to as ‘Investigation Period’). The Investigation Report (hereinafter referred to as ‘IR’) observed that during the Investigation Period the price of the scrip opened at Rs.74.35 on May 2, 2005 reached a high of Rs. 97.50 on May 24, 2005 and closed at Rs. 89.25 on July 1, 2005.
Page 3 of 12 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations’) alleged to have been committed by the noticee.
Page 4 of 12 and Marathi (Sakal, Mumbai Edition, 10th April) news papers informing that SCN was issued against the noticee in the matter of WOL and the same is made available on the SEBI Website i.e. www.sebi.gov.in under the heading “Unserved Summons / Notices” and noticee can also collect a copy of the SCN from the office of the Adjudicating officer. Further another notice was also published in English (The Hindustan Times, Mumbai edition) news paper stating that the noticee or authorized representative may appear for Personal hearing on April 15, 2010 at 5:00 P.M at SEBI Head Office, Mumbai. From the records it is observed that the noticee neither collected a copy of SCN nor attended the personal hearing without furnishing any reasons. In view of the above attempts made to serve the SCN and personal hearing notices through Speed Post Acknowledgement Due and Hand Delivery Acknowledgment Due as prescribed in the Adjudication Rules and further publication of notices in newspapers, I am fully convinced that Principles of Natural Justice is complied with. In view of the above steps taken to deliver the SCN and personal hearing notices and in the absence of any response from the noticee, I am compelled to pass an ex-parte order against the noticee based on the material made available on record.
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Source: SecMarx — sebi:IVD-ID6/KSERA-SP/AO/DRK/ASG/EAD3-160-2009/63-2010. 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.