sebi:Order/BM/UR/2022-23/17225

SEBI · SEBI · 2021-09-20 · Barnali Mukherjee, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalty imposed on Noticee for violation of Sections 11C(3) and 11C(5) of the SEBI Act

Provisions invoked

• s. 11
• s. 15A
• s. 15
• s. 15J
• s. 11C(3)
• s. 28A
• s. 11C(5)

Parties

• Yadunath Singh (PAN: ECLPS1036K)

Holding

The Noticee violated Sections 11C(3) and 11C(5) of the SEBI Act by failing to comply with summons issued by the Investigating Authority, and a penalty of Rs. 10,00,000 was imposed under Sections 15A(a) and 15HB of the SEBI Act.

Full text

Adjudication Proceedings in respect of Covidh Technologies Limited Page 2 of 11 (Procedure for Holding Inquiry and imposing penalties) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) vide order dated September 20, 2021 to inquire into and adjudge under Section 15A(a) and 15 HB of SEBI act for the alleged violation of the provisions of Section 11C(3) and 11C(5) of the SEBI act.

Adjudication Proceedings in respect of Covidh Technologies Limited Page 3 of 11 ISSUE II : Does the violation, if any, on part of the Noticee attract penalty under Section 15A(a) and 15HB of the SEBI Act ?

Adjudication Proceedings in respect of Covidh Technologies Limited Page 4 of 11 9. During the investigation period, the price of the scrip opened at Rs. 3.65 and closed at Rs.3.67. It was observed that the average number of shares traded daily during the investigation period was 4,38,007 which was much higher than the average number of shares traded before IP (3,276 shares) and after IP (12, 484 shares). Whereas the average shares traded daily during the period Nov 17, 2016- Feb 15, 2017 was just 3,276.

Source: SecMarx — sebi:Order/BM/UR/2022-23/17225. 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.