sebi:Order/GR/KG/2020-21/10150
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Facts / Headnote
Penalty imposed on the Noticee for non-compliance with SEBI summonses
Provisions invoked
- s. 15A
- s. 15
- s. 15I
- s. 15J
- s. 11C
- s. 12
- s. 15F
- s. 28A
- s. 11C(2)
- s. 15I(1)
- s. 11C(3)
- s. 11(2)
Parties
- Jahman Dealers Private Limited
Holding
The Noticee, Jahman Dealers Private Limited, violated sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with three summonses issued by SEBI, and a monetary penalty of Rs. 5,00,000/- was imposed under section 15A(a) of the SEBI Act.
Full text
Adjudication Order in respect of Jahman Dealers Private Limited in the matter of Dwitiya Trading Limited Page 2 of 16 and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (“PFUTP Regulations”), Securities and Exchange Board of India Act, 1992 (“SEBI Act”), Securities Contracts (Regulation) Act, 1956 (“SCRA”) and any other Regulations made there under, if any. The period of investigation for SEBI was from February 28, 2013 to May 10, 2013. It was prima facie observed that the company had misutilised its fund raised through the issue of preferential shares and a part of the said funds was transferred to certain entities purportedly for purchasing shares from the said entities, which included Jahman Dealers Pvt. Ltd (“hereinafter referred to as the “Noticee”).
Adjudication Order in respect of Jahman Dealers Private Limited in the matter of Dwitiya Trading Limited Page 3 of 16 5. As observed from the above table, the company had utilised Rs. 3.90 crores of the funds raised through the preferential issue for granting loans to 9 entities. The company has also informed that the remaining issue proceeds of Rs. 0.90 crores were invested in purchasing shares of the following private companies:
Adjudication Order in respect of Jahman Dealers Private Limited in the matter of Dwitiya Trading Limited Page 4 of 16 provided the following information:
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Source: SecMarx — sebi:Order/GR/KG/2020-21/10150. 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.