sebi:IVD-ID8/GCCL-RWEL/AO/DRK/SS/EAD-3/174-09/77-10
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Facts / Headnote
Penalty of Rs.2,00,000 imposed under Section 15A(a) for violation of Section 11C(3)
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 11C(6)
- s. 11C(3)
- s. 11C(5)
Regulations
- Reg. 7
- Reg. 8(1)(a)
Parties
- Reliable Wind Energy Limited
Holding
The noticee, Reliable Wind Energy Limited, violated Section 11C(3) of the SEBI Act by failing to comply with the summons dated December 18, 2003. A penalty of Rs.2,00,000 under Section 15A(a) was imposed on it.
Full text
Page 2 of 12 2. Investigation by SEBI revealed that GCCL Securities Ltd. (herinafter referred to as ‘GSL’), a stock-broker of ASE had transacted in the scrip of GCCL in large quantities on behalf of more than 35 clients from Ahmedabad. GSL had purchased 10,74,300 shares of GCCL during settlement nos. 5 to 11 of 1996.
Page 3 of 12 APPOINTMENT OF ADJUDICATING OFFICER 7. I was appointed as the Adjudicating Officer (subsequent to transfer of the previous Adjudicating Officers) vide order dated February 24, 2009, under Section 15 I of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the ‘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 15A of the SEBI Act, the violation committed by the noticee for its failure to respond to the summons issued and submit the required information.
Page 4 of 12 11. Subsequently with a change in the Adjudicating Officer (AO), a fresh show cause notice dated November 16, 2006 (hereinafter referred to as ‘SCN2’) was issued to the noticee at an alternate address of the noticee as available on record i.e. A/35, third Floor, Capital Communication Centre, Ashram Road, Ahmedabad. It was stated in SCN2 that GCCL had come out with an IPO at par in November 1995 and its shares were listed on BSE and ASE at a price of Rs.25/-. The scrip traded in the range of Rs.15- Rs.25 till May 06, 1996. Subsequently it reached Rs.92/- on June 07, 1996, leading to suspension of the scrip by BSE in June 1996 and also launching of formal investigation by SEBI in August 1997.
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Source: SecMarx — sebi:IVD-ID8/GCCL-RWEL/AO/DRK/SS/EAD-3/174-09/77-10. 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.