sebi:PB/AO-43/2012
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Facts / Headnote
Penalty of Rs 1,00,000 imposed on the Noticee
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 11C
- s. 11C(3)
Parties
- Prabhat Sethia
Holding
The Noticee violated section 11C(3) of the SEBI Act by failing to furnish information and documents sought by the Investigating Authority and is therefore liable for penalty under section 15A(a). A monetary penalty of Rs 1,00,000 was imposed on the Noticee.
Full text
Page 2 of 10 APPOINTMENT OF ADJUDICATING OFFICER 3. The undersigned has been appointed as Adjudicating Officer vide order dated September 24, 2010 under section 15 I of the SEBI Act read with rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the ‘Rules’) to inquire into and adjudge under section 15A (a) of the SEBI Act.
Page 3 of 10 6. 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 May 03, 2012 vide Notice dated April 18, 2012. Mr. Bharat B Shah, Authorized Representative (hereinafter referred to as “AR”) appeared on behalf of the Noticee on May 03, 2012 and submitted inter-alia as under:
Page 4 of 10 Rs.ll and last trade was done on 3rd Oct, 2007 at a average price of Rs.13.99. This can be verified from copy of bills enclosed as annexure B. From this it is very clear that although on April 2, 2007 price was Rs.8.05 and on Nov 21st ,2007 the price was Rs.22.4 we have never accumulated the shares to earn profit. I enclose herewith statement of price data after 21st Nov 2007 as Annexure C, which shows that price shares of M/s. FFL gradually increased to Rs.35 on 7in April 2008 and to Rs.73/- on 19th March 2009 with good volume. (During this period we have not dealt in the shares of FFL) From this it is clear that we have never tried to earn any profit by accumulating the shares or manipulating the price or volume of FFL shares. 4 Sir, from this it is very clear that whatever we have done was only to facilitate the financial institution and small investor in disposing their shares in physical form. Sir we reiterate that all the shares purchased in physical form were disposed off immediately on conversion to D mated without expecting any monetary gain. 5 We have always co operated the IO officers and given all the information which we had. 6 We could not submit certain information/documents in connection with Swaminathan rajendran because he had already left the organization.
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Source: SecMarx — sebi:PB/AO-43/2012. 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.