sebi:Order/SM/AR/2018-19/804
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Facts / Headnote
Penalty of Rs 5,00,000 imposed under Section 15A(a) of the SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 11
- s. 15J
- s. 11C(6)
- s. 12
- s. 11C
Parties
- Shri Udaybhai Prabhudas Shah
Holding
The Noticee violated Sections 11C(2) and 11C(3) of the SEBI Act by failing to furnish information/documents sought vide summons dated January 29, 2014 and June 04, 2014 and is liable for monetary penalty under Section 15A(a). A penalty of Rs 5,00,000 was imposed on Shri Udaybhai Prabhudas Shah.
Full text
Page 2 of 14 the IPO of RKDL viz. Comfort Securities Limited ( hereinafter referred to as “CSL”). It was also observed during the investigation that CIL, which has been referred in the aforementioned news article was a group/associate company of CSL.
Page 3 of 14 4. A pictorial representation of the above mentioned flow of funds from the account of RKDL to the Noticee through Gulistan, which was mentioned in the IR that was enclosed along with the SCN issued to the Noticee is given below:
Page 4 of 14 him, thereby hampering the investigation (corresponding documents given at Annexure 21)” 6. In view of the above observations and in order to ascertain the veracity behind the above transactions and to draw precise conclusions in the matter regarding the role of the Noticee, the Investigating Authority (IA) of SEBI had issued two summons to the Noticee on different dates. Summons dated January 29, 2014 and June 4, 2014 were issued to the Noticee at his Bhavnagar address located at Siddhchakra Flat B/1/201, Krishnanagar Blood bank Road, Bhavnagar, Gujarat- 364001. The summonses were sent to the Noticee’s address by Speed Post with Ack due ( SPAD) and were also served on the Noticee, which is evident from the proof of service of the said two summons on the Noticee’s address. The summons issued to the Noticee also contained an Annexure seeking information / details / documents / records from the Noticee w.r.t. his transactions with Gulistan and Kunvarji Finstock Pvt Ltd, as mentioned above.
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Source: SecMarx — sebi:Order/SM/AR/2018-19/804. 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.