sebi:Order/SM/HG/2022-23/22975

SEBI · SEBI · 2020-02-12 · Soma Majumder, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Violation established; penalty imposed

Provisions invoked

• s. 15A
• s. 15
• s. 19
• s. 11(2)
• s. 15J
• s. 11C
• s. 28A

Parties

• Hanif Kasambhai Shekh

Holding

The Noticee violated Section 11C(3) of the SEBI Act by failing to furnish information/documents sought by the Investigating Authority, and is liable to a monetary penalty of Rs. 10,00,000 under Section 15A(a) of the SEBI Act.

Full text

Adjudication Order in the matter of V B Industries Limited Page 2 of 18 2. During the course of investigation, it was observed that the said bulk SMS were sent from the header HP-ACURAT. It was also observed that some of the SMS /tips/ recommendations were also sent from website www.accurateinv.com which is not active now. During the investigation, the Investigating Authority (hereinafter referred to as ‘IA’) appointed by SEBI in the matter, called upon Hanif Kasambhai Shekh (hereinafter referred to as “Noticee”) to provide certain information/details through summonses. However, it was observed that Noticee had not co-operated during investigation and failed to provide the documents/ information requisitioned by the IA and thereby hampered the process of investigation. In view of the same, it was alleged that Noticee has violated Section 11C (3) of the SEBI Act.

Adjudication Order in the matter of V B Industries Limited Page 3 of 18 Sr. No. Summon No. Summon Date Address Delivery Status 1. IVD/ID11/OW/P/2020/ 1350/1 09/01/2020 Mr Hanifbhai Sheikh Bloodbank Pasec, Sardar Nagar, Bhavnagar, Gujarat - 364001 Returned undelivered with remarks “insufficient address” 2. IVD/ID11/OW/P/2020/ 1352/1 Mr Hanifbhai Sheikh Plot no. 587/B, Rehmant Royal, Flat no. 102, Bhilwada Circle, Bhavnagar, Gujarat - 364001 Returned undelivered with remarks “addressee left without instructions” 3. IVD/ID11/OW/P/2020/ 5780/1 (Annexure-2) 12/02/2020 Mr Hanifbhai Sheikh Near Gurjat Travels, Sarpathni Road, Bhavnagar, GJ - 364001

Adjudication Order in the matter of V B Industries Limited Page 4 of 18 d) It was observed that the Summons dated October 09, 2020 and reminder Summons dated November 05, 2020 and November 20, 2020 were delivered Noticee, however, no reply was received from him. e) It is observed that the information sought from the Noticee vide the above- mentioned Summons was crucial for further investigation into the creation and operating the website viz. www.accurateinv.com and his association/connection with the abovementioned exit providers and other entities involved in manipulation of the scrip of VBIL. Thus, the non- submission of the information/documents by the Noticee has hampered the investigation. f) In view of the above, it is alleged that the Noticee has failed to furnish the documents/ information as sought under Summons/reminder summons issued u/s 11C (3) of the SEBI Act and thus not complied with the said Summons. Accordingly, the Noticee is alleged to have violated the provisions of Section 11C (3) of SEBI Act.

Source: SecMarx — sebi:Order/SM/HG/2022-23/22975. 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.