sebi:PKB/AO-15/2009
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Facts / Headnote
Penalty imposed on noticee for non-compliance with summons
Provisions invoked
- s. 11B
- s. 11
- s. 15A
- s. 15J
- s. 15
- s. 11C
- s. 11C(3)
Regulations
- Reg. 11
- Reg. 4(1)
Parties
- Shri. Vasant. C. Shah
Holding
The noticee, Shri. Vasant. C. Shah, failed to comply with the summons issued under Section 11C(3) and 11C(5) of the SEBI Act, 1992 and is liable to a penalty of Rs. 5,00,000 under Section 15A(a) of the SEBI Act.
Full text
Adjudication Order in respect of Shri. Vasant .C. Shah Page 2 of 12 3/19/2009 SEBI to ascertain whether any provision of the SEBI Act , 1992 and various rules and regulations made there under had been violated during the investigation period.
Adjudication Order in respect of Shri. Vasant .C. Shah Page 3 of 12 3/19/2009 in his reply dated April 10, 2005 to the summons dated March 22, 2005 provided partial information(i.e statement of his demat account) and also stated that personal presence is not necessary as details have been provided. Thereafter, vide summons dated April 19th 2005, it was clarified to the noticee that in terms of Section 11C(3) & 11C(5) his personal appearance was required. The noticee failed to respond to the said summons. Subsequently, summons dated May 9th, 2005 was also issued to the noticee to which he again did not respond. It is alleged that the noticee failed to be present before the investigating officer as well as did not provide full information.
Adjudication Order in respect of Shri. Vasant .C. Shah Page 4 of 12 3/19/2009 decided to conduct an inquiry in the matter and the noticee was granted an opportunity of personal hearing and accordingly was advised to attend the hearing on December 4, 2007, but the noticee failed to appear on the said date and vide letter dated December 3, 2007 sought fresh date with a minimum one month gap. Subsequent to my appointment as Adjudicating Officer, I, considering the request of the noticee, vide notice dated January 12, 2009 granted personal hearing to noticee on February 12, 2009, but noticee again failed to appear on the said date. The noticee vide letter dated February 5, 2009 again sought a fresh date to be present before me for personal hearing. Therefore, in the interest of natural justice I vide notice dated February 18, 2009 again granted personal hearing on March 6, 2009, but noticee once again failed to appear on the said date. The noticee again sought a fresh date for the hearing. In this regard, I have observed that all the three notices of Personal Hearing have been duly received by the noticee. However, neither the noticee nor his authorized representative appeared and always tried to evade personal hearing by asking for a fresh date. I note here that the noticee was provided sufficient time to present himself and had failed to appear for personal hearings despite three opportunities. Therefore, the inquiry is proceeded with taking into account the facts and material
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Source: SecMarx — sebi:PKB/AO-15/2009. 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.