sebi:PG/AO-17/2011
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 13
- s. 15J
- s. 23
- s. 23H
Regulations
- Reg. 13
- Reg. 13(1)
- Reg. 13(3)
Parties
- Mr. Bharat Kantilal Jain
Holding
The noticee violated regulations 13(1) and 13(3) of the PIT Regulations by failing to disclose acquisition and disposal of 31,66,251 shares of JEIL to the company and is liable to penalty of Rs. 30,000 under Section 15A(b) of the SEBI Act; no violation of Sections 13 and 18(1) read with Section 2(i)(a) of SCRA was found.
Full text
Page 2 of 13 counterparties, all the disclosures filed under the various SEBI Regulations etc. 3. Mr. Jain vide letter dated 05.10.2010 informed that he had purchased the shares of JEIL for investment purpose. It is seen from the said letter that Mr. Jain purchased 31,66,251 shares of JEIL (which was 11.49% of the equity capital of the Company) from ICICI Bank Ltd. on 23.06.2010 and sold the 31,66,251 shares of JEIL to 3A Capital Services Ltd. on 06.07.2010.
Page 3 of 13 APPOINTMENT OF ADJUDICATING OFFICER 5. The undersigned was appointed as the Adjudicating Officer, vide order dated January 07, 2011 under Section 15 I of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the “Act”) and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the “Rules”) to enquire into and adjudge under Section 15 A(b) of the Act and section 23H of SCRA, for the alleged violation of the provisions of PIT Regulations and SCRA as observed during the investigations conducted by SEBI into the trading in the scrip of JEIL.
Page 4 of 13 8. In the interim reply to the SCN dated March 03, 2011, the noticee sought for an extension of two weeks to prepare the submissions to the SCN. Thereafter, vide letter dated March 16, 2011, he submitted a detailed reply to the SCN. Again a third letter dated March 24, 2011 making certain submissions was also sent by him to substantiate his stance in the matter. The main submissions of the noticee are as follows:
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Source: SecMarx — sebi:PG/AO-17/2011. 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.