sebi:IVD-ID7/SCL/AO/DRK/AKS/EAD3-252/18/2011
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Facts / Headnote
Penalty imposed on the noticee for violations of PFUTP Regulations and failure to appear before investigating authority
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 11C
- s. 12
- s. 11C(2)
Regulations
- Reg. 3
- Reg. 13
- Reg. 199
- Reg. 200
Parties
- Astrol Dealcom Pvt. Ltd.
Holding
The noticee, Astrol Dealcom Pvt. Ltd., was found to have violated Regulations 3 and 4(a), (b), (c) and (d) of the PFUTP Regulations 1995 read with Regulation 13 of PFUTP Regulations 2003 by creating artificial volumes and misleading appearance of trading in the illiquid scrip of SCL, and also violated Section 11C(2) read with Sections 11C(3) and 11C(5) of the SEBI Act by failing to appear before the investigating authority. A consolidated penalty of Rs. 14,00,000/- was imposed.
Full text
Page 2 of 12 with Jalan & Co, stock-broker of CSE, who was acting for and on behalf of and as Constituted Attorney of various Companies for purchase of 21,45,550 shares (constituting 44.70% of the share capital of SCL) at a price of ` 2/- per share. Pursuant to the agreement, the Acquirers were required to make a public offer to acquire 9,60,000 shares of SCL representing 20% of its paid up capital to the shareholders of SCL in compliance with the Takeover Regulations.
Page 3 of 12 Services P. Ltd. The sellers were Classic Agencies Pvt. Ltd., GIR Marketing & Trading Co. Pvt. Ltd., Santosh Kumar Niraj Kumar (HUF), Sandeep Sales Agencies Pvt. Ltd. and Zenom Vyapaar Pvt. Ltd. All the major clients, except Classic Agencies Pvt. Ltd. which was connected / associated / related with SCL, had opened their account with the stock- broker just prior to the investigation period. e. All the above clients except Santosh Kr. Niraj Kr. (HUF) had their demat accounts with the same Depository Participant, G. Raj & Co. (Consultants) Ltd. All these clients had opened the demat accounts just prior to the investigation period. None of these clients except Bhagats Joshi (I) Ltd. had traded in any other scrips, apart from SCL, in a major way. f. All the buyers were connected / associated / related with each other and also with SCL. The sellers were also connected / associated / related with each other. The buyers and sellers were connected / associated / related with Classic Agencies Pvt. Ltd., which was connected / associated / related with SCL.
Page 4 of 12 Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations 2003’) and Section 11C(2) read with Sections 11C(3) and 11C(5) of the SEBI Act alleged to have been committed by the noticee. SHOW CAUSE NOTICE, REPLY AND HEARING
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Source: SecMarx — sebi:IVD-ID7/SCL/AO/DRK/AKS/EAD3-252/18/2011. 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.