sebi:PB/AO-58/2011
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Facts / Headnote
Penalty imposed on the Noticee for violation of PFUTP Regulations and PIT Regulations
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 12
- s. 4A
Regulations
- Reg. 7
- Reg. 3
- Reg. 4
- Reg. 12(1)
- Reg. 4(2)
- Reg. 200
- Reg. 12
- Reg. 3(d)
Parties
- Milan Parekh (Chairman and Managing Director of AFSIL)
Holding
The Noticee, Chairman and Managing Director of AFSIL, was held liable for violating regulation 12(1) read with clause 3.2-5 of the Code of Conduct under PIT Regulations and regulations 3(d), 4(2)(a), 4(2)(b) and 4(2)(d) of the PFUTP Regulations, and a total penalty of Rs. 1,25,000 was imposed (Rs. 1,00,000 under section 15HA and Rs. 25,000 under section 15HB of the SEBI Act).
Full text
Page 2 of 22 regulations 3(d), 4(2)(a), 4(2)(b) and 4(2)(d) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations 2003 (hereinafter referred to as “PFUTP Regulations”) and consequently, liable for monetary penalty under section 15HA and section 15HB of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 3 of 22 the change of name of the company, stock split and increase of authorized capital of the company was made at 2:54 PM on September 08, 2005. The decisions of the Board approving the above issues were announced at 4:00 PM on September 14, 2005. The corporate announcement was reflected on the BSE website on September 08, 2005 and September 14, 2005. It was alleged that the trading window was opened before the corporate announcements came in the public domain i.e. it was open on September 08, 2005 and September 13,
Page 4 of 22 6. The aforesaid SCN was sent through Hand Delivery. The said notice was received and acknowledged by the Noticee. Vide letter dated February 21, 2011, the Noticee requested for 4 weeks time for filing reply. Vide letter dated March 24, 2011, the Noticee filed the reply. The Noticee in his reply, inter-alia stated:
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Source: SecMarx — sebi:PB/AO-58/2011. 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.