sebi:PB/AO-131/2010
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Facts / Headnote
Ex-parte penalty of Rs. 1,00,000 imposed for violation of Sections 11C(3) and 11C(5)
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 11C
Holding
The Noticee violated Sections 11C(3) and 11C(5) of the SEBI Act by failing to appear in person and furnish information in response to the delivered summons dated January 17, 2005, and is liable for monetary penalty under Section 15A(a) of the SEBI Act. A monetary penalty of Rs. 1,00,000 was imposed ex-parte.
Full text
Page 2 of 14 1992 (hereinafter referred to as ‘SEBI Act’) and consequently, liable for monetary penalty under section 15A (a) of the SEBI Act.
Page 3 of 14 6. Subsequent to my appointment, a press notification was issued in the English national daily “Hindustan Times” as well as in local newspaper “Sakal” published in Marathi on April 10, 2010 about the SCN requiring the Noticee or his authorized representative to collect the SCN from the office of Adjudicating Officer. It was also mentioned in the said notification that if the Noticee failed to reply to the SCN within 14 days from the date of publication, it shall be presumed that the Noticee did not have any reply to submit and the matter would be further proceeded ex-parte. The press notification was issued as a substitute service, for the Noticee. The copy of SCN was also uploaded on SEBI website i.e. www.sebi.gov.in. However, I find that the Noticee neither collected the SCN nor replied to the SCN.
Page 4 of 14 8. In view of the aforesaid steps taken, I am convinced that ample opportunities have been given to the Noticee to explain his case. As per rule 4(7) of the Rules, if any person fails, neglects or refuses to appear as required by sub-rule (3) before the Adjudicating Officer, he may proceed with the inquiry in the absence of such person after recording the reasons therefor. Despite having been given ample opportunities, the Noticee had failed to avail of the same. I am, therefore, compelled to proceed with the matter ex- parte based on the material available on record.
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Source: SecMarx — sebi:PB/AO-131/2010. 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.