sebi:Order/KS/AE/2021-22//14895-14908

SEBI · SEBI · 2006-04-13 · K Saravanan, Adjudicating Officer

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Facts / Headnote

Noticees 1 to 6 held to have violated PFUTP Regulations read with Section 12A of SEBI Act and Clause 35 of Listing Agreement read with Section 21 of SCRA, Noticees 7 to 14 held to have violated PFUTP Regulations read with Section 12A, and all held liable for penalty under Section 15HA of SEBI Act

Provisions invoked

• s. 15
• s. 19
• s. 11B
• s. 12A
• s. 12
• s. 81
• s. 21
• s. 11
• s. 15H
• s. 27
• s. 15J
• s. 28A
• s. 27(1)
• s. 23
• s. 23E
• s. 81(1)
• s. 29
• s. 409
• s. 101
• s. 21o

Regulations

• Reg. 4
• Reg. 3
• Reg. 4(1)
• Reg. 10
• Reg. 4(2)
• Reg. 3(a)
• Reg. 3(b)
• Reg. 4(2)(a)
• Reg. 3(b)(c)

Holding

Noticees 1 to 6 violated Section 12A(a),(b),(c) of SEBI Act read with Regulations 3(a)-(d) and 4(1), 4(2)(a),(d),(e),(f),(r) of PFUTP Regulations and Clause 35 of Listing Agreement read with Section 21 of SCRA, and Noticees 7 to 14 violated Section 12A read with Regulations 3(a)-(d) and 4(1) of PFUTP Regulations, making them liable for penalty under Section 15HA of SEBI Act.

Full text

Adjudication Order in the matter of Sumeet Industries Limited. Page 2 of 96 FACTS OF THE CASE 1. Securities and Exchange Board of India (hereinafter referred to as "SEBI") carried out an investigation into the suspected price and volume manipulation in the scrip of Sumeet Industries Ltd. (hereinafter referred to as "the Company" or "SIL") for the period October 1, 2006 to March 12, 2007 (hereinafter referred to as “Investigation Period”). Based on investigation, it was alleged that Noticee 1 to 6 have violated provisions of Regulations 3 (a),(b),(c),(d) and 4(1) 4(2)(a),(d),(e),(f) and (r) of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (hereinafter referred to as "PFUTP Regulations"), as applicable, read with Section 12A(a),(b) & (c) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as "SEBI Act") and Clause 35 of the Listing Agreement read with SEBI Circular no. SEBI/CFD/DIL/LA/2006/13/4 dated April 13,2006 and Section 21 of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCRA”). Further, Noticee 7 to 14 are alleged to have violated the provisions of Regulations 3 (a),(b),(c),(d) and 4(1) of PFUTP Regulations read with Section 12A(a),(b) & (c) of the SEBI Act.

Adjudication Order in the matter of Sumeet Industries Limited. Page 3 of 96 impugned order, it is not possible to answer the question as to whether the

Adjudication Order in the matter of Sumeet Industries Limited. Page 4 of 96 Noticee Details of SCN (v) Bajranglal Somani (vi) Mahesh Kumar Somani (vii) Sumandevi Somani SCN ref. no. A&E/EAD-8/KS/VB/24118/2018 dated August 28, 2018 (viii) Urmila Somani SCN ref. no. A&E/EAD-8/KS/VB/24117/2018 dated August 28, 2018 (ix) Ganga Somani SCN ref. no. A&E/EAD-8/KS/VB/24120/2018 dated August 28, 2018 (x) Ambaji Syntex Pvt Ltd SCN ref. no. A&E/EAD-8/KS/VB/24115/2018 dated August 28, 2018 (xi) Somani Overseas Pvt Ltd SCN ref. no. A&E/EAD-8/KS/VB/24114/2018 dated August 28, 2018 (xii) Sumeet Methanol Pvt Ltd SCN ref. no. A&E/EAD-8/KS/VB/24121/2018 dated August 28, 2018 (xiii) Sumeet Silk Processors Pvt Ltd SCN ref. no. A&E/EAD-8/KS/VB/24116/2018 dated August 28, 2018 (xiv) Sitaram Prints Pvt Ltd SCN ref. no. A&E/EAD-8/KS/VB/24119/2018 dated August 28, 2018

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