sebi:Order/VV/JR/2020-21/8581

SEBI · SEBI · 2019-02-07 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Penalty of Rs. 2,00,000 imposed on the Noticee under section 15HB of SEBI Act

Provisions invoked

• s. 15
• s. 11
• s. 15H
• s. 15J
• s. 11C
• s. 12
• s. 28A

Parties

• Siddarth Businesses Limited

Holding

The Noticee violated sections 11C(2) and 11C(3) of the SEBI Act by furnishing incorrect and misleading pre-clearance documents to the Investigating Authority and was held liable under section 15HB of the SEBI Act with a monetary penalty of Rs. 2,00,000.

Full text

In the matter of Siddarth Businesses Limited Page 2 of 9 APPOINTMENT OF ADJUDICATING OFFICER 2. SEBI vide order dated February 7, 2019 appointed Shri Jeevan Sonparote as the Adjudicating Officer under section 15 I of Securities Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as “AO Rules”) to inquire into and adjudge the aforesaid allegations under section 15HB of SEBI Act. Pursuant to the transfer of the case, the undersigned was appointed as the Adjudicating Officer vide order dated August 13, 2019.

In the matter of Siddarth Businesses Limited Page 3 of 9 CONSIDERATION OF ISSUES AND EVIDENCE 6. I have carefully perused the charges levelled against the Noticee in the SCN and the material / documents available on record. In the instant matter, the following issues arise for consideration and determination:-

In the matter of Siddarth Businesses Limited Page 4 of 9 8. Sub-section (2) of section 11 casts duty on the persons mentioned therein to preserve and to produce to the Investigating Authority (hereinafter referred to as “IA”) or any person authorized by it in this behalf, all the books, registers, other documents and record of, or relating to, the company or, the intermediary or such person, which are in their custody or power. Sub-section (3) authorizes the IA to call for the information, which in his views are relevant or necessary for the purposes of its investigation and furnishing of the information as desired by the IA obligatory.

Source: SecMarx — sebi:Order/VV/JR/2020-21/8581. 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.