sebi:PB/AO-92/2011
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Facts / Headnote
Penalty imposed ex-parte for violation of PIT Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 13
- Reg. 13(4)
- Reg. 13(5)
Holding
The Noticee, as Manager/officer of Filatex Fashions Limited, violated regulation 13(4) read with regulation 13(5) of PIT Regulations on six occasions by failing to disclose changes in shareholding, and a penalty of Rs. 50,000 under section 15A(b) of SEBI Act was imposed ex-parte.
Full text
Page 2 of 12 APPOINTMENT OF ADJUDICATING OFFICER 3. The undersigned has been appointed as Adjudicating Officer vide order dated September 24, 2010 under section 15 I of SEBI Act read with rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations of provisions of PIT Regulations.
Page 3 of 12 6. In the interest of natural justice and in order to conduct an inquiry as per rule 4 (3) of the Rules, the Noticee was granted an opportunity of personal hearing on July 25, 2011 vide notice dated July 14, 2011. The said notice was sent through SPAD to address mentioned by the Noticee for further correspondence in the copy of consent application, i.e. H No. 37, RMS Colony, Bharati Street, Edamalaipatti Puthur, Trichy- 620012, Tamilnadu as well as his e-mail address swamirajen06@gmail.com mentioned in the consent application. However, the same was returned undelivered with remark “No Such Addressee”. Further, the notice sent to the aforesaid e- mail address was delivered to the Noticee. The Noticee was granted another opportunity of personal hearing on August 11, 2011 vide notice dated July 15, 2011. The said notice was once again sent though SPAD to the aforesaid address. However, the same was returned undelivered with remark “No Such addressee”. The last opportunity of hearing was granted to the Noticee on August 26, 2011 vide notice dated August 12, 2011. The said notice was sent through SPAD to “Filatex Fashions Limited, Mayfair Garden, Road No. 12, Banjara Hills, Hyderabad – 500 034 as well as his e- mail address swamirajen06@gmail.com. The said notice was returned undelivered with remark “No Such Addressee”. Further, the notice sent to the aforesaid e-mail address was delivered to the Noticee.
Page 4 of 12 Notices sent to address mentioned by the Noticee in the consent application returned undelivered. Notices sent to e-mail address mentioned by the Noticee delivered to the Noticee were never acknowledged by the Noticee. The mobile number mentioned in the consent application i.e. 9030739805 is not a valid number gives indication of the Noticee’s misleading intention. Through the SCN as well as hearing notices, the Noticee was advised that as the proceedings were in progress, to keep the undersigned informed about the change in correspondence address, if any, till the proceedings are complete. However, the Noticee chose to ignore the advice.
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Source: SecMarx — sebi:PB/AO-92/2011. 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.