sebi:IVD-ID9/RDB/AO/DRK-AKS/EAD3-464/7-2014
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Facts / Headnote
Penalty imposed on noticee under Section 15HA of the SEBI Act for violations of Section 12A(a), (b), (c) of the SEBI Act read with Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a), (d), (e) of PFUTP Regulations, 2003
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
Parties
- Shri Dave Harihar Kiritbhai
Holding
The Adjudicating Officer held that the noticee violated Section 12A(a), (b), (c) of the SEBI Act read with Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a), (d), (e) of the PFUTP Regulations, 2003, and imposed a penalty of Rs. 2 Crore under Section 15HA of the SEBI Act.
Full text
Page 2 of 10 APPOINTMENT OF ADJUDICATING OFFICER 2. I was appointed as the Adjudicating Officer 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 Sections 15 HA and 15 HB of the SEBI Act the violations of Sections 12A (a), (b) and (c) of the SEBI Act read with Regulations 3 (a), (b), (c), (d), 4 (1), 4 (2) (a), (d) and (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‗PFUTP Regulations‘) alleged to have been committed by Shri Dave Harihar Kiritbahi (hereinafter referred to as ‗noticee‘) and the same was communicated vide proceedings of the Whole Time Member appointing Adjudicating Officer dated 11.05.2013.
Page 3 of 10 Office II, Ahmedabad. The said notice was served on the noticee and proof of service is on record. Further the noticee was advised to submit his reply to the SCN on or before 13.09.2013. However the noticee failed to attend the scheduled hearing without providing any reasons. A final opportunity of hearing was granted to the noticee vide hearing notice dated 03.10.2013 to attend the hearing on 28.10.2013 at 03:00 pm at SEBI Bhavan, Mumbai. the noticee was also advised to submit a reply to the SCN by 21.10.2013. In the said notice it was also mentioned that if the noticee fail to attend the hearing the matter shall be proceeded based on the material made available on record. Proofs of service of the notice is on record. The noticee again failed to attend the scheduled hearing without providing any reasons.
Page 4 of 10 delivery to trade percentage was just 11.48%. Further the deliverable quantity of 40,17,005 shares out of the 45 Lakh shares issued through IPO represents 89.27%. Thus, a large portion of the allottees of RDB IPO had sold their shares on the day of listing.
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Source: SecMarx — sebi:IVD-ID9/RDB/AO/DRK-AKS/EAD3-464/7-2014. 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.