sebi:PB/AO-21/2010
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Facts / Headnote
Violation of Sections 11C(2) and 11C(3) established; monetary penalty of Rs.5,00,000 imposed ex-parte under Section 15A(a)
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 11C
- s. 12
Holding
The Noticee violated sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with three summonses issued by the Investigating Authority and is liable for monetary penalty under section 15A(a). A penalty of Rs.5,00,000 was imposed ex-parte.
Full text
Page 2 of 12 1992 (hereinafter referred to as ‘SEBI Act’) and consequently, liable for monetary penalty under section 15A (a) of the SEBI Act.
Page 3 of 12 7. In the interest of natural justice and in order to conduct an inquiry in terms of rule 4(3) of the Rules, the Noticee was granted an opportunity of personal hearing on January 20, 2009, vide notice dated December 31, 2008 sent through ASE to the last known address. The said hearing notice was returned undelivered as per the communication of ASE dated January 21, 2009. The second opportunity of hearing was granted to the Noticee on April 13, 2010 vide notice dated March 26, 2010. Since the Noticee was not found in his last known address, a press notification was issued in the local newspaper “Sandesh” published in Gujarati on April 10, 2010 as well as in a national daily “Hindustan Times” on April 9 and April 10, 2010 about the hearing notice requiring the Noticee to come and receive the hearing notice. The press notification was issued as a substitute service, for the Noticee. Pursuant to the advertisement, I note that the Noticee had not contacted SEBI and taken steps to receive the hearing Notice.
Page 4 of 12 a. Whether the Noticee had complied or not with the provisions of sections 11C (2) and 11C (3) of SEBI Act? b. Does the non-compliance, if any, attract monetary penalty under section 15A (a) of SEBI Act? c. If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in section 15J of SEBI Act?
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Source: SecMarx — sebi:PB/AO-21/2010. 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.