sebi:Order/SBM/PP/2018-19/1292
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Facts / Headnote
Adjudication proceedings abated and disposed of without any penalty
Provisions invoked
- s. 15
- s. 23
Regulations
- Reg. 3(a)
- Reg. 77(1)
Parties
- Late Shri Maheshchandra Chunilal Shah
Holding
The adjudication proceedings initiated against Late Shri Maheshchandra Chunilal Shah vide SCNs dated March 10, 2017 and December 21, 2017 stand abated and are disposed of without any penalty due to his death on October 2, 2013.
Full text
Page 2 of 4 that they had realized as sale proceeds out of the shares allotted to them in the preferential allotment made by the company during March, 2012.
Page 3 of 4 1995 and Adjudication Rules 2005, to show cause as to why an inquiry should not be initiated and penalty, if any, be not imposed on the Noticee for his alleged failure to comply with the directions issued by SEBI vide interim order dated November 05, 2013 and also allegedly indulging in manipulative transactions/dealings in the scrip of STL. It was alleged that the Noticee had indulged in self trades in the scrip of STL on 89 trading days during the above mentioned investigation period and it was further alleged that he had contributed to positive Last Traded Price (LTP) in the scrip during the investigation period. Further, from the investigation report, it is noted that the Noticee along with other persons/entities had allegedly indulged in increasing the scrip price of STL by establishing the base price for further trades in the scrip at a higher price through First Trades executed by him in the scrip. In view of the above observations, it is alleged that the Noticee has violated the provisions of Regulations 3(a),(b),(c),(d), 4(1), 4(2)(a),(b),(e) & (g) of PFUTP Regulations and Regulation 77(1) of the ICDR Regulations.
Page 4 of 4 is personal to the deceased, the right to sue will not survive to or against the representatives and in such cases the maxim ‘actio personalis moritur cum persona’ (personal action dies with the death of the person) would apply. Therefore, in view of the above observations, without going into the merits of the case, I am of the view that the present adjudication proceedings initiated against the Noticee will not survive. Consequently, no penalty is imposed on the Noticee, who has since deceased and the adjudication proceedings shall stand abated.
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Source: SecMarx — sebi:Order/SBM/PP/2018-19/1292. 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.