sebi:Order/SM/VC/2018-19/1675
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Facts / Headnote
Adjudication proceedings disposed of; allegation of violation of sections 11C(2) and 11C(3) of the SEBI Act held not sustainable
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 12
Parties
- BLC Trading & Agencies Ltd.
Holding
The Adjudicating Officer held that the allegation against BLC Trading & Agencies Ltd. for violating sections 11C(2) and 11C(3) of the SEBI Act by furnishing false/contradictory information in response to summons is not sustainable, following the Supreme Court's judgment in Bonanza Biotech Ltd vs SEBI, and disposed of the adjudication proceedings without imposing any penalty.
Full text
Page 2 of 16 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 is a group/associate company of CSL.
Page 3 of 16 iii. Further, the Noticee, on December 04, 2010, received Rs. 2 crore from the account of Ranisati which the Noticee transferred to the account of Fact Enterprises Ltd (‘Fact’) on the same day. iv. Thereafter, the Noticee received an amount of Rs. 3.75 crore from the account of Ranisati on December 13, 2010. On the same day, the Noticee also received an amount of Rs. 1,68,98,339/- from the account of CSL, broker of the Noticee, as payout towards the sale of 2,25,539 shares of RPP Infraprojects Ltd. allotted to the Noticee in IPO of RPP Infraprojects Ltd. Thereafter, the Noticee transferred Rs. 5.45 crore to the account of Fact on the same day i.e. December 13, 2010. v. It is further observed that CIL transferred Rs. 2 crore to the account of Ranisati on December 23, 2010. On the same day i.e. December 23, 2010, Ranisati transferred the said amount of Rs. 2 crore to the account of the Noticee which the Noticee further transferred to the account of Syncom Formulations (India) Ltd. (Syncom). vi. Syncom had purchased 4.30 lakh shares of RKDL for a total value of approx. Rs. 3.66 crore on the first day of list of scrip of RKDL i.e. December 27, 2010.
Page 4 of 16 2.60 lakh shares of CIL for a value of Rs. 10.4 lakh on December 23, 2010. iii. The Noticee received back an amount of Rs. 50 lakh from Fairwealth on January 06, 2011 which the Noticee transferred to the account of Fact on January 07, 2011. iv. The Noticee transferred an amount of Rs. 1 lakh to the account of RKDL on January 27, 2011.
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Source: SecMarx — sebi:Order/SM/VC/2018-19/1675. 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.