sebi:Order/AK/RK/2025-26/31381

SEBI · SEBI · 2023-09-06 · Amit Kapoor, Adjudicating Officer

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Facts / Headnote

Adjudication proceedings initiated vide SCN dated March 26, 2024 disposed of without penalty; no violation found

Provisions invoked

• s. 15
• s. 19
• s. 15H
• s. 15J

Regulations

• Reg. 15
• Reg. 9
• Reg. 15(b)
• Reg. 15(1)(b)

Parties

• M/s P Babulal & Company

Holding

The Adjudicating Officer held that M/s P Babulal & Company did not violate Clause A(2) of Code of Conduct as specified in Schedule II r/w Regulation 15(1)(b) of Brokers Regulations and disposed of the adjudication proceedings initiated vide SCN dated March 26, 2024.

Full text

Adjudication Order in the matter of M/s P Babulal & Company Page 2 of 17 dated September 06, 2023. Subsequently, Shri Amar Navlani, Shri Biju S and Smt Asha Shetty were appointed as the AOs, vide orders dated December 08, 2023, March 14, 2024 and July 22, 2024 respectively. However pursuant to the transfer of case, undersigned was appointed as AO under Section 19 read with Sub-Section (1) of Section 15-I of the SEBI Act, 1992, (hereinafter referred to as “SEBI Act”) and Rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as the “SEBI Adjudication Rules”), vide order dated November 22, 2024, to inquire into and adjudge the alleged violations by the Noticee.

Adjudication Order in the matter of M/s P Babulal & Company Page 3 of 17 Noticee on August 22, 2024, vide email dated August 09, 2024, which was duly availed by the AR of the Noticee. Vide email dated September 22, 2024, AR of the Noticee sought clarification w.r.t delay in the initiation of the proceedings and reliance by SEBI on the statements, made under oath by Mr. Hemant Punamiya and Mr. Arvind Babulal Goyal in the matter and requested for an opportunity to cross-examine the said individuals. The AR of the Noticee was provided an opportunity of cross- examination of Mr Hemant Sagarmalji Punamiya, on November 13, 2024, vide email dated October 25, 2024. AR of the Noticee, vide email dated October 25, 2024 requested to prepone the cross-examination to November 12, 2024. The said request of the AR was acceded to and AR of the Noticee was provided opportunity of cross- examination on November 12, 2024. However, the cross-examination in the matter could not be completed on the said date as Mr Hemant Punamiya abstained from the said proceedings. Subsequently, another opportunity of cross-examination in the matter, was granted to the Noticee on December 04, 2024, vide email dated November 21, 2024 but Mr Heman Punamiya again abstained himself on the said date and cross-examination in the matter could not be concluded.

Adjudication Order in the matter of M/s P Babulal & Company Page 4 of 17 8. In response to the said communication, AR of the Noticee, vide email dated January 15, 2025, requested for additional time to file reply in the matter, which was acceded to and the AR was given time till February 07, 2025 to submit its reply in the matter. Noticee submitted its reply in the matter, vide letter dated January 27, 2025 and requested for certain documents. Vide email dated February 07, 2025, Noticee was informed to provide the list of specific documents to be inspected by it and relevant to the allegations made against it, by February 10, 2025. AR of the Noticee, vide email dated February 07, 2025 provided a lsit of documents sought by it. Vide email dated February 11, 2025, AR of the Noticee was granted a second opportunity for inspection of documents in the matter on February 12, 2025. AR of the Noticee, vide email dated February 11, 2025 requested to reschedule the inspection of documents and hence, vide email dated February 11, 2025, inspection of documents in the matter was rescheduled to February 24, 2025. The said inspection opportunity was duly availed by the AR wherein all the relevant and relied upon documents were provided to it. The reply of the Noticee, vide its letter dated January 27, 2025 is summarized as under; 8.1 Noticee submitted that the delay in issuing the SCN has caused significant prejudice as the alleged offence occurred in 2012, investigation in the matter was c

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