sebi:MO/155/IVD/01/06
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Facts / Headnote
M/s. Hind Comtel Ltd. prohibited from buying, selling or dealing in securities, directly or indirectly, for a period of six months; charges against Shri L. N. Agarwal dropped due to his death.
Provisions invoked
- s. 11B
- s. 11
- s. 19
Regulations
- Reg. 11
- Reg. 4
Parties
- M/s. Hind Comtel Ltd.
- Shri L. N. Agarwal
Holding
M/s. Hind Comtel Ltd. was found guilty of violating Regulation 4(b) and (d) of the SEBI (PFUTP) Regulations, 1995 for engaging in synchronised deals that created a false and misleading appearance of trading in the scrip of Havells India Ltd., and was prohibited from buying, selling or dealing in securities for six months. The charges against its Director Shri L. N. Agarwal were dropped as he had deceased during the pendency of proceedings.
Full text
Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ ORDER AGAINST M/S. HIND COMTEL LTD. AND ITS DIRECTOR, SHRI L. N. AGARWAL UNDER SECTION 11B READ WITH SECTION 11 (4) (b) OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992, READ WITH REGULATION 11 AND 13 OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (PROHIBITION OF FRAUDULENT AND UNFAIR TRADE PRACTICES RELATING TO THE SECURITIES MARKET) REGULATIONS, 2003, IN THE MATTER OF M/S. HAVELLS INDIA LIMITED.
ORDER This direction shall come into force with immediate effect. MADHUKAR DATE:31-01-06 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
Based on the above findings of the investigation, it was alleged that HCL along with the other client Focus have created a false and misleading impression of trading in the scrip of HIL for the period under scrutiny by entering into synchronised deals, thereby violating the provisions of Regulation 4 (b) and (d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 1995. SHOW-CAUSE NOTICE, REPLY AND HEARING Pursuant to the investigation, a show cause notice No. IVD/ID3/PKB/JJS/HIL/ 1213/04 dated 19th January,2004 was issued to HCL and its Director Shri L. N. Agarwal under Section 11 (4) (b) read with Section 11B of the SEBI Act,1992, read with the provisions of Regulation 11 and 13 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003 asking them to show cause as to why suitable directions including such directions prohibiting them from buying, selling or dealing in securities for a specified period should not be issued. It was also mentioned that if they failed to submit any reply within the stipulated period of 21 days, it would be construed that they had no explanation to offer and SEBI would be constrained to pass such orders as specified in terms of the Act and Regulations. However, neither HCL nor its Director Shri L. N. Agarwal replied to the said show cause notice. Further to the above, an opportunity of hearing was granted to HCL and its director Shri
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Source: SecMarx — sebi:MO/155/IVD/01/06. 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.