sebi:Order/BM/UR/2022-23/17223-17224
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Facts / Headnote
Penalty imposed on Noticee 1 & 2 for contravention of PFUTP Regulations; payment directed within 45 days
Provisions invoked
- s. 15
- s. 11B
- s. 11
- s. 15H
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 4
- Reg. 3
- Reg. 2(1)(c)
- Reg. 28
- Reg. 200
- Reg. 2
- Reg. 27
- Reg. 2(c)
- Reg. 3(a)
- Reg. 2(1)
Parties
- Manju Mutha (Noticee 1)
- Noticee 2
Holding
Noticee 1 & 2, as part of the Manish Rathi group, were found to have executed circular/reversal trades in connivance with other groups creating artificial volume impacting the price of OITL scrip, thereby violating Regulations 3(a), 3(b), 3(c), 3(d), 4(1), 4(2)(a), 4(2)(b), 4(2)(e) and 4(2)(g) of the PFUTP Regulations, and a penalty was imposed under Section 15HA of the SEBI Act.
Full text
Page 2 of 64 vide Order dated September 17, 2021, in appeals no. 552 of 2019, 507 of 2019, 508 of 2019, 509 of 2019, 514 of 2019, 545 of 2019, 600 of 2019, 607 of 2019, 611 of 2019, 612 of 2019, 30 of 2020, 67 of 2020, 68 of 2020 while remitting the Adjudication Order dated August 02, 2019 remanded the case to Adjudicating Officer for reconsideration on the quantum of penalty only in the light of the
Page 3 of 64 representative and should have also sent notice, if any, to the correct address of the appellants which, in the instant case, was not done. Merely publishing the notice in a newspaper does not cure the initial defect in the service of the notice especially when the appellants deny subscribing to those newspapers. Consequently, the impugned order in so far as the appellants in appeal No. 515 of 2019 cannot be sustained.
Page 4 of 64 SHOW CAUSE NOTICE, REPLY AND HEARING 7. Show Cause Notice dated August 23, 2013 (hereinafter referred to as 'SCN') bearing reference no. EAD-5/PG/AK/2/329/2013 and Supplementary Show Cause Notice (hereinafter referred to as 'SSCN') dated October 29, 2014 bearing reference no. EAD6/AK/VG/30646/2014 was issued to the Noticee 1 & 2 under Rule 4(1) of the SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (‘Adjudication Rules’).
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Source: SecMarx — sebi:Order/BM/UR/2022-23/17223-17224. 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.