sebi:Order/SM/VC/2018-19/1595
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Facts / Headnote
Penalty imposed on the Noticee for failure to comply with summons
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15J
- s. 11C(6)
- s. 11C
- s. 12
- s. 11C(2)
- s. 11C(3)
Parties
- Suvidha Securities Private Limited
Holding
The Noticee, Suvidha Securities Private Limited, violated sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with the summons dated December 04, 2014 issued by the Investigating Authority, and a penalty of Rs 5,00,000/- was imposed under section 15A(a) of the SEBI Act.
Full text
Page 2 of 19 RKDL was siphoned off by RKDL in connivance with the associate/connected entities of the Merchant Banker associated with the IPO of RKDL viz. Comfort Securities Limited (hereinafter referred to as ‘CSL’). It was also observed during the course of investigation that CIL, which has been referred in the aforementioned news article, was a group/associate company of CSL.
Page 3 of 19 to BLC in the IPO of RPP Infraprojects. Thereafter, on the same day, BLC transferred Rs 5.45 crore to Fact Enterprises Ltd. (Fact). Fact further transferred Rs. 5.45 crore to Suvidha on the same day i.e. December 13, 2010. iii. It is further observed that the Noticee had applied for 10,15,600 shares in the IPO of RKDL and in this regard had transferred an amount of Rs 6,49,98,400 to the escrow account of RKDL on December 14, 2010, using the abovementioned amount/funds that were transferred to it by various entities ( as discussed above). The Noticee was allotted 2,85,201 shares in the IPO of RKDL for an amount of Rs 1,82,52,864/-. Thereafter, on December 20, 2010, RKDL refunded an amount of Rs 4,67,45,536 to the account of the Noticee on December 23, 2010, iv. Out of the money received from RKDL towards the abovementioned refund, the Noticee transferred an amount of Rs. 4.65 Crore to Religare Securities, the stock broker of the Noticee. The said amount of Rs 4.65 crore was utilized by the Noticee towards the purchase of shares of RKDL. Using this money, Suvidha had purchased 8 lakh shares of RKDL (buy value = approx. Rs 6.63 crore) and sold 6 lakh shares of RKDL (sell value = approx. Rs 4.78 crore) on the first day of the listing of the scrip of RKDL on the stock exchanges , i.e. December 27, 2010. Further, Suvidha had also purchased 6,55,362 shares (buy value = approx. Rs 5.31 crore) and sold 2,41,434 shares (sell value = approx. Rs 1.98 crore) of RKDL during De
Page 4 of 19 Transaction of the Noticee as mentioned in para 3 above 5. Specifically, the IR had made the following observations against the Noticee:- “Fund transactions prior to receipt of IPO proceeds Further, on Dec 04, 2010, Ranisati also transferred Rs 15 lakhs to Suvidha Securities Pvt Ltd (Kotak Mahindra Bank A/c no. 09612000003224) (Annexure 9), which had applied in the IPO of RKDL and had also traded in the scrip. On the same day (Dec 13, 2010), Ranisati also received Rs 2.15 crore from CSL (broker) as pay-out, out of which Rs 1.79 crore was from (net) sale of 2,25,539 shares of RPP Infraprojects Ltd allotted to Ranisati in IPO. Ranisati transferred Rs 3.75 crore to BLC and Rs 1.045 crore to Suvidha on the same day, i.e., Dec 13, 2010. On the same day, BLC also received Rs 1,68,98,339/- from CSL (broker) as pay-out for sale of 2,25,539 shares of RPP Infraprojects Ltd allotted to
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Source: SecMarx — sebi:Order/SM/VC/2018-19/1595. 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.