sebi:Order/NH/YK/2024-25/30614-30622

SEBI · SEBI · 2013-10-03 · N Hariharan, Chief General Manager and Adjudicating Officer

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Facts / Headnote

Penalties imposed on all nine Noticees under Section 23H of the SCRA for participating in non-compliant off-market transactions in Optiemus Infracom Limited shares during the investigation period.

Provisions invoked

Parties

Holding

The Noticees were found to have violated Section 16 of the SCRA read with the SEBI Notification dated October 03, 2013, and Sections 13 and 18 read with Section 2(i) of the SCRA by participating in off-market transactions of Optiemus shares during the investigation period that did not comply with spot delivery contract requirements. Penalties ranging from Rs. 1,00,000 to Rs. 11,00,000 were imposed on each Noticee under Section 23H of the SCRA.

Full text

Adjudication order in the matter of Optiemus Infracom Limited Page 2 of 60 the period from October 13, 2017, to August 29, 2019 (hereinafter referred to as “IP”/“Investigation Period”). During the course of the investigation, it was, inter alia, alleged that the Noticees have entered into off-market transactions in the shares of Optiemus without complying with the provisions of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as “SCRA”). Therefore, it was alleged that the Noticees have violated the provisions of Section 16 of the SCRA read with SEBI Notification No. LAD-NRO/GN/2013-14/26/6667 dated October 03, 2013 (hereinafter referred to as “SEBI Notification dated October 03, 2013”) and Sections 13 and 18 of the SCRA read with Section 2(i) of the SCRA. APPOINTMENT OF ADJUDICATING OFFICER

Adjudication order in the matter of Optiemus Infracom Limited Page 3 of 60 4. The SCN dated October 26, 2023, inter alia, alleged the following: “  It was observed during the investigation period that certain entities had carried out off- market transactions. The details received from the depositories were analyzed to establish connections between the entities. On analyzing the bank account provided in the Unique Client Code (UCC) details of the entities under investigation, no corresponding entries for any such transactions could be observed. In order to ascertain reasons for the aforesaid off-market transfer and relationship/association with counterparty etc., information along with documentary evidence were sought from the entities.  The details of the off-market transfers, is as under and the summary of responses received from the Noticees are as follows: Table 1 Date Transferor Counter- party Qty. Amount as per the DIS Slip Reason recorded on the DIS Slip Whether amount paid / received * Reason provided by Transferor and reply dates wherever applicable Whether condition s of spot transacti ons complied 28/03/ 2019 Hayward Technologies Pvt. Ltd. Altruistic Trading Pvt Ltd 450000 43290000 Margin No unauthorise d transaction s by broker vide reply dated July 28, 2023 No 08/05/ 2019 Harsimrat Investment Private Limited Unity Global Financial Services Private Limited 300000 Not mentioned Collateral No shares as collateral for the proviso of the margin for trading vide reply

Adjudication order in the matter of Optiemus Infracom Limited Page 4 of 60 Date Transferor Counter- party Qty. Amount as per the DIS Slip Reason recorded on the DIS Slip Whether amount paid / received * Reason provided by Transferor and reply dates wherever applicable Whether condition s of spot transacti ons complied 23/05/ 2019 Hayward Technologies Pvt. Ltd. Vijay Kumar 200000 23000000 Off- Market Sale No Collateral for property developme nt transaction and considerati on not applicable vide reply dated July 28, 2023 No 27/05/ 2019 Pataliputra  International Limited Unity Global Financial Services Private Limited 300000 Not mentioned Collateral No Shares as collateral for the proviso of the margin for trading vide reply dated July 19, 2023. No 31/05/ 2019 Unity Global Financial Services Private Limited XYZ1 100000 Not mentioned Loan Return No No reply received from the transferor No 31/05/ 2019 Unity Global Financial Services Private Limited Pataliputra  Internation al Limited 70000 Not mentioned Loan Return No No reply received from the transferor No 06/06/ 2019 Unity Global Financial Services Private Limited Harsimrat Investment Private Limited 40000 Not mentioned Loan Return No No reply received from the transferor No 10/06/ 2019 Unity Global Financial Harsimrat Investment 40000 Not mentioned Loan Return No No reply received No

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