sebi:Order/PM/AB/2020-21/8801
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Facts / Headnote
Exonerated - charges not established, SCN disposed off
Provisions invoked
- s. 12A
- s. 15H
- s. 15J
Regulations
- Reg. 3(a)
Parties
- Shri Arvind Morzaria
Holding
The Adjudicating Officer held that the charges against Shri Arvind Morzaria in the SCN dated July 11, 2018 were not established and disposed off the SCN without imposing any penalty.
Full text
Page 2 of 5 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 4. A Show Cause Notice dated July 11, 2018 (hereinafter be referred to as the “SCN”) was issued to the Noticee under Rule 4 of the AO Rules to show cause as to why an inquiry should not be initiated and penalty be not imposed under Section 15HA of the SEBI Act for the allegations as detailed in the said SCN. The scrip of PAL was listed on BSE on March 25, 1994, and was subsequently suspended from trading w.e.f November 9, 1998. Before the suspension of trading the scrip was last traded at Rs.12 on August 03, 1994. The suspension of trading in the securities of the scrip was revoked w.e.f June 22, 2012, however, trading in the scrip started only on March 28, 2013. The company conducted first preferential allotment around December, 2012 and another preferential allotment around March, 2013. The face value of equity shares of the company were split in the ratio of 10:1 i.e. one share was split into 10 shares with effect from May 17, 2013. 4.4. The price of the shares of PAL moved from ₹441 on March 28, 2013 to ₹485 on April 02, 2013. Further, the share was split from the face value of ₹10 each to ₹1 each on May 17, 2013. Thereafter, the price of the scrip touched a high of ₹100.60 on June 20, 2013. The role of entities who had contributed to the increase in Last Trade Price (hereinafter referred to as “LTP”) was examined by SEBI. Shri Arvind Morzaria (hereinafter referred to as “the Noticee”) was an allotee in the prefere
Page 3 of 5 8. The SCN was duly delivered and the Noticee vide letter dated July 28, 2018 requested the proceedings to be kept in abeyance till the conclusion of another proceedings on same cause of action before the SEBI Whole Time Member.
Page 4 of 5 11. I have carefully perused the reply to the SCN, oral and written submissions of the Noticee and the documents available on record. The issues that arise for consideration in the present case are : Issue No. I Whether the trading done by the Noticee during the Investigation Period were in violation of Section 12A(a), (b) and (c) of SEBI Act and Regulations 3(a), (b), (c), (d) and 4(1) of the PFUTP Regulations? Issue No. II If yes, whether the violation, on the part of the Noticee would attract monetary penalty under Section 15HA of the SEBI Act? Issue No. III If yes, what would be the monetary penalty that can be imposed upon the Noticee taking into consideration the factors stipulated in Section 15J of the SEBI Act read with Rule 5 (2) of the Adjudication Rules?
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Source: SecMarx — sebi:Order/PM/AB/2020-21/8801. 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.