sebi:IVD-ID7/AL-RG/AO/DRK-AKS/EAD3-394/60-2013
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 noticee for fraudulent and unfair trade practices
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
Parties
- Shri Rajeev Gupta
Holding
The noticee was found to have violated Regulations 3(a), (b), (c), (d) and 4(1), (2), (a) and (g) of the PFUTP Regulations by executing self trades, and a penalty of Rs. 50,000 was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 7 APPOINTMENT OF ADJUDICATING OFFICER 2. I was appointed as the Adjudicating Officer and the same was communicated vide proceedings of the Whole Time Member appointing Adjudicating Officer dated 10.04.2013 under Section 15 I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI 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 the violation of Regulations 3 (a), (b), (c), (d), 4 (1), (2), (a) and (g) of PFUTP Regulations alleged to have been committed by Shri Rajeev Gupta (hereinafter referred to as ‘noticee’).
Page 3 of 7 5. Vide personal hearing notice dated 26.07.2013, the noticee was granted an opportunity of hearing at SEBI Northern Regional Office, New Delhi on 12.08.2013. In response to this the noticee vide his email dated 06.08.2013 confirmed his appearance for the scheduled hearing. However, vide his email dated 08.08.2013, noticee requested for an adjournment for the scheduled hearing as his grandfather was hospitalized. It is noted from our records that the hearing notice dated 26.07.2013 which was sent via Speed Post Acknowledgement Due (herein after referred to as ‘SPAD’) came back undelivered with remark “unclaimed”.
Page 4 of 7 9. Self trades are trades in which both the buyer and the seller are the same entity resulting in no change in beneficial ownership. It is observed from the investigation report (herein after referred to as ‘IR’) that the noticee had executed 12 self trades on 3 days for 2,638 shares. On one day i.e. on 02.09.2008 the noticee had executed 10 self trades for 1,550 shares. It is observed from the Order Log Trade Log that all 10 trades were executed around 10:58 am and the time difference between placing of the sell order and the buy order was within a gap of 15 minutes.
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-ID7/AL-RG/AO/DRK-AKS/EAD3-394/60-2013. 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.