sebi:PB/AO-94/2011

SEBI · SEBI · 2011-03-29 · Parag Basu, Adjudicating Officer

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Facts / Headnote

Penalty imposed on Noticee for failure to comply with summonses under sections 11C(2) and 11C(3) of the SEBI Act

Provisions invoked

• s. 15A
• s. 15
• s. 15J
• s. 11C
• s. 12

Parties

• Noticee (name not specified in provided text)

Holding

The Noticee was held to have violated sections 11C(2) and 11C(3) of the SEBI Act by failing to fully comply with three summonses issued by the Investigating Authority, and a monetary penalty of Rs. 1,00,000 was imposed under section 15A(a) of the SEBI Act.

Full text

Page 2 of 14 APPOINTMENT OF ADJUDICATING OFFICER 3. The undersigned has been appointed as Adjudicating Officer vide order dated March 29, 2011 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 14 personal hearing on November 3, 2011 vide Notice dated October 11, 2011 sent through speed post. The said hearing notice was received by the Noticee. The Noticee vide letter dated October 31, 2011 stated that it would be unable to be present at Mumbai due to ill health of its director and hence requested for another opportunity of hearing at Delhi. Acceding to the request of the Noticee another opportunity of hearing was granted to the Noticee on November 18, 2011 at SEBI Northern Regional Office at New Delhi vide letter dated November 8, 2011. The said hearing notice was received and acknowledged by the Noticee. The hearing however could not be held as Mr. Vijay Jhindal, the director of the Noticee appeared much after the time specified in the hearing notice. Noticee vide letter dated November 18, 2011 requested for another opportunity of hearing. Acceding to the request of Noticee, final opportunity of hearing was granted on December 12, 2011 vide letter dated November 23, 2011. Mr. Vijay Jhindal, director of the Noticee appeared as Authorised Representative (hereinafter referred to as “AR”) on behalf of the Noticee. During the course of the hearing the AR stated that Noticee had submitted the information which was available with it to the Investigating Authority (hereinafter referred to as “IA”). On being asked to make submission on the point that Noticee did not provide complete information as was asked in the summonses dated August 11, 2009, August 28, 2011

Page 4 of 14 transactions in the scrip of SIL done by the Noticee, details of shareholding in SIL as on September 30, 2006, December 31, 2006, March 31, 2007, June 30, 2007, datewise details of acquisition of shares along with source of acquisition of shares, details of payments made, name and address of the counter party with the relevant documents such as bank statements indicating the payments made to the seller and copy of demat statement indicating the deliveries received from the party, explanation of debit/ credit entries of 2lac or more in the bank statement during the investigation period and purpose for the same along with the name and address of the counterparties, copy of statements of demat accounts operated by the Noticee during the period July 1, 2006 to June 30, 2007 etc., The AR requested ten days time to furnish information about submitting of the abovementioned details to the IA. However till date, Noticee failed to submit any further information regarding its submission of remaining information to the IA.

Source: SecMarx — sebi:PB/AO-94/2011. 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.