sebi:Order/AK/VP/2022-23/22098
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Facts / Headnote
Penalties imposed on all 10 Noticees for violations of SEBI Act and PFUTP Regulations; proceedings concluded ex-parte against Noticees 1-9 and on merits against Noticee 10 (Mobonair).
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 11B
- s. 12A
- s. 11
- s. 15H
- s. 15J
- s. 11C
- s. 12
- s. 11C(3)
- s. 11C(2)
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 3(a)
Holding
The nine individual Noticees were held to have violated Section 12A(a),(b),(c) of the SEBI Act r/w Regulations 3(a),(b),(c),(d) and 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations for engaging in circular/synchronized trading in the scrip of Millitoons Entertainment Limited, and Noticee No. 10 (Mobonair Wireless Pvt Ltd) was held to have violated Section 11C(3) r/w 11C(2) of the SEBI Act for failing to furnish documents/information sought during investigation. Penalties were imposed under Section 15HA and Section 15A(a) respectively.
Full text
Adjudication Order in respect of 10 entities in the matter of Millitoons Entertainment Limited Page 2 of 31 Unfair Trade Practice relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Adjudication Order in respect of 10 entities in the matter of Millitoons Entertainment Limited Page 3 of 31 SHOW CAUSE NOTICE, REPLY AND HEARING
Adjudication Order in respect of 10 entities in the matter of Millitoons Entertainment Limited Page 4 of 31 5. Since the Noticees did not file their reply to the SCN, an opportunity of hearing was granted to the Noticees, vide Hearing Notice dated October 06, 2022, on 17.10.2022. I note that the hearing notice issued to the Noticees by email was delivered and the Hearing Notice sent by Speed Post Acknowledgement Due was duly delivered to Noticee No. 1-Preyashbhai, Noticee No. 2-Sejalben, Noticee No. 3-Suresh, Noticee No-4-Dharmeshbhai, Noticee No. 5-Vijay, Noticee No. 7- Mehulkumar and Noticee No.10-Mobonair. The Hearing Notice sent to Noticee No. 6, 8 and 9 returned undelivered. The Noticees were given the option to appear personally or through online meeting. No request for online meeting was received from any of the Noticees except Noticee No. 10-Mobonair, which requested for online hearing. Accordingly, link for online meeting was sent to the Noticees. On the day of hearing i.e. October 17, 2022, only Mr. Sandesh Pandey, Director of Noticee No. 10: Mobonair appeared on behalf of Mobonair Wirless Private Limited and accepted the charges against it. No other Noticees appeared for the hearing. Another opportunity of hearing was granted to Noticees (Other than Mobonair Wirless Private Limited) vide Hearing Notice dated October 17, 2022 and Noticees were granted an opportunity of hearing on October 25, 2022. I note that the hearing notices was duly served to the Noticees on Oc
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Source: SecMarx — sebi:Order/AK/VP/2022-23/22098. 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.