sebi:Order/SR/PP/2019-20/6629/158
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Facts / Headnote
Penalty of Rs. 3,50,000 imposed under section 23H of SCRA for off-market transfer violations; allegations under SAST Regulations, PIT Regulations and PFUTP Regulations held not established
Provisions invoked
- s. 15A
- s. 15
- s. 12A
- s. 15H
- s. 13
- s. 15J
- s. 28A
- s. 23J
- s. 23
- s. 23H
- s. 17
- s. 18
- s. 16
Regulations
- Reg. 11
- Reg. 3
- Reg. 4(1)
- Reg. 199
- Reg. 2(1)(e)
- Reg. 10
- Reg. 13(1)
- Reg. 11(1)
- Reg. 7(1)
- Reg. 3(a)
- Reg. 4(2)(a)
- Reg. 18
- Reg. 32
- Reg. 12(2)
- Reg. 44
Parties
- Dharmendra Bhojak
Holding
Only the SCRA violation for acquiring 3,50,000 shares off-market without proof of payment was established, and a penalty of Rs. 3,50,000 under section 23H of SCRA was imposed; violations of SAST, PIT and PFUTP provisions were held not established.
Full text
Adjudication Order in respect of Dharmendra Bhojak in the matter of Incap Financial Services Limited . Page 2 of 17 2. On the basis of the aforementioned complaint, a department of SEBI (OD) undertook an investigation in the matter for the period from December 1, 2010 to February 23, 2011 (Investigation period / IP ) to ascertain whether there was any violation of the provisions of Securities and Exchange Board of India Act, 1992 (SEBI Act), Securities Contracts (Regulation) Act, 1956 (SCRA), the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (PFUTP Regulations), the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997 (Takeover Regulations) and the SEBI (Prohibition of Insider Trading) Regulations, 1992 (Insider Trading Regulations). The shares of Incap were listed at BSE Limited (BSE), during IP.
Adjudication Order in respect of Dharmendra Bhojak in the matter of Incap Financial Services Limited . Page 3 of 17 section 15-I of the SEBI Act read with (r/w) rule 3 of the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules,1995 (hereinafter referred to as AO Rules, 1995) and section 23-I of SCRA r/w rule 3 of Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 2005 (hereinafter referred to as AO Rules, 2005) to inquire into and adjudge under the alleged violations of regulation 7(1) & 7(1A) and regulation 10 & 11(1) of SAST Regulations, regulation 13(1) & 13(3) of PIT Regulations, sections 12A(a), (b), (c) of SEBI Act r/w regulation 3(a), (b), (c) & (d) and 4(1), 4(2)(a) & (g) of PFUTP Regulations and section 16 of SCRA r/w SEBI Notification G.S.R.219(E) dated March 2, 2000, sections 13 & 18 of SCRA r/w section 2(i) of SCRA by the Noticee. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
Adjudication Order in respect of Dharmendra Bhojak in the matter of Incap Financial Services Limited . Page 4 of 17 Regulation 13(1) & 13(3) of PIT Regulation, 1992 read with Regulation 12(2) of the PIT Regulation, 2015 Sec. 15A(b) of SEBI Act, 1992
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