sebi:Order/VV/AK/PSS/2022-23/18168

SEBI · SEBI · 2018-11-21 · Vijayant Kumar Verma, 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

Penalty imposed on the Noticee

Provisions invoked

• s. 11
• s. 15A
• s. 15
• s. 11(2)
• s. 15I
• s. 15J
• s. 15F
• s. 28A

Regulations

• Reg. 4
• Reg. 4(2)(k)
• Reg. 15H
• Reg. 24

Parties

• Zodiac Solutions (Proprietor: Pratipal Singh Zala)

Holding

The Noticee Zodiac Solutions (Proprietor: Pratipal Singh Zala) was held liable for violating sections 11(2)(ia) and 11C(3) of the SEBI Act for non-compliance with SEBI summonses, and Regulation 4(2)(k) of the PFUTP Regulations for disseminating false and misleading information through bulk SMS about the scrip of Ejecta Marketing Limited, and was imposed penalties of Rs. 3,00,000/- and Rs. 5,00,000/- respectively.

Full text

Adjudication order in the matter of Ejecta Marketing Limited. Page 2 of 14 Penalties) Rules, 1995(“Adjudication Rules”) was issued calling upon Zodiac Solutions (hereinafter referred to as ‘the Noticee’) to show cause as to why appropriate penalty under section 15A(a) and 15HA of the Securities and Exchange Board of India Act, 1992 (hereinafter called as the ‘SEBI Act, 1992’) be not imposed upon the Noticee for alleged violation of sections 11 (2) (ia) and 11C (3) of the SEBI Act and regulation 4 (2) (k) of PFUTP Regulations.

Adjudication order in the matter of Ejecta Marketing Limited. Page 3 of 14 V. Thereafter, the Investigating Authority issued first Summons dated January 16, 2020 to Zodiac Solutions at the aforesaid address (Address – 1), which returned undelivered with the remark, “Addressee moved”. Simultaneously a scanned copy of the summons sent to the email id, zodiacsolutions.8343@gmail.com (as per available data/ data provided by the TSP) was delivered. However, no response was received from the entity. Thereafter, another summons was issued on February 10, 2020 at Address – 1 and also at another address i.e. Darbar Gadh Katosan TA Jhotana Mehsana Gujarat – 384430 (referred to as Address – 2) obtained from Bank of Baroda. The said summons returned undelivered from Address – 1 with the remark, “Addressee moved” and was delivered at the 2nd Address – 2. Simultaneously, a scanned copy of the summons was sent to the same email id as mentioned above, which was delivered. However, no response was received from the entity.

Adjudication order in the matter of Ejecta Marketing Limited. Page 4 of 14 IX. It was also observed from VISPL’s ICICI bank account – 001305010869, that it received payment of Rs. 50,300/- from Pratipal Singh Zala (proprietor of Zodiac Solutions) on May 8, 2018 (i.e. approx. week before the bulk SMS were sent). Corresponding entries were found in bank account of M/s. Zodiac Solutions (Bank of Baroda - 01660100016160). It was further observed that M/s. Zodiac Solutions made huge cash deposits (Rs. 9,73,500/- on May 5, 2018 and Rs. 50,000/- on May 7, 2018) in his bank account just before the said payment to VISPL.

Source: SecMarx — sebi:Order/VV/AK/PSS/2022-23/18168. 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.