sebi:ORDER/SBM/2018-19/1497
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 11(4)
- s. 15
- s. 19
- s. 15H
- s. 15J
Regulations
- Reg. 11
- Reg. 77(1)
Parties
- Shri Rajesh Ranka
Holding
The Adjudicating Officer held that Shri Rajesh Ranka failed to comply with the directions issued by SEBI vide Order dated July 28, 2010 restraining him from buying, selling or dealing in securities and from associating in the securities market for two years, and imposed a penalty of Rs 10,00,000 under Section 15HB of the SEBI Act.
Full text
Page 2 of 24 2. In this regard, the directions mentioned below were issued to the Noticee by SEBI, vide the aforementioned order, restraining the Noticee from buying, selling or dealing in securities and from associating in the securities market, in any manner whatsoever, for a period of two years from the date of the above mentioned order i.e 2 years w.e.f July 28, 2010:- “Therefore, taking into consideration the facts and circumstances of the case, I, in exercise of the powers conferred upon me under Section 19 of the SEBI Act, 1992 read with sections 11(4) & 11B of the SEBI Act, 1992 and Regulation 11 of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003, do restrain Shri Rajesh Ranka from buying, selling or dealing in securities and from associating in securities market in any manner whatsoever for a period of 2 years”
Page 3 of 24 4. It was observed that, on March 15, 2012, the Company made a further issue of 3,00,00,000 equity shares of Rs 10 each at a price of Rs 10 per share by way of preferential allotment to its three promoters viz. Mr Jagadish Vital, Mr Akash Jagadish Vital and Ms Anita Srinivasabhatt Kadanthalai , and also to 28 other persons/entities. It was observed that the Noticee, circulated approximately Rs 1,99,50,000 back and forth between the company and the above mentioned 31 allottees of the preferential allotment and later on, after the allotment of shares in the preferential allotment, the above amount funded by the Noticee was ultimately returned to him by the company. It was observed that the above funds were circulated by the Noticee to other allottees of the preferential allotment when, by virtue of the Order dated July 28, 2010, the Noticee was explicitly prohibited / restrained from buying, selling, dealing or associating in the securities market, in any manner whatsoever, for a period of 2 years. The same has already been discussed at para 2 above.
Page 4 of 24 promoters and also various persons/entities associated with the preferential allotment, which also includes the Noticee for his significant role in the preferential allotment of SMSTL. Subsequently, a final order in the matter was also passed by Whole Time Member SEBI, vide Order dated July 27, 2018, inter alia, issuing directions to the persons/entities who were associated with the manipulation of the preferential allotment of the Company, including the Noticee.
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Source: SecMarx — sebi:ORDER/SBM/2018-19/1497. 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.