sebi:PKB/AO-18/2009

SEBI · SEBI · 2005-04-17 · P. K. Bindlish, Adjudicating Officer

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Facts / Headnote

Penalty imposed on noticee for non-compliance with summons; noticee not found guilty of fraudulent and unfair trade practices

Provisions invoked

• s. 15A
• s. 11
• s. 15J
• s. 15
• s. 11C
• s. 11C(3)

Regulations

• Reg. 4(1)

Parties

• Shri. Amit Bhavsar

Holding

The noticee Shri. Amit Bhavsar was held liable for failure to comply with summons issued under Section 11C(3) and 11C(5) of the SEBI Act, 1992, and a penalty of Rs. 2,00,000 was imposed under Section 15A(a). However, the noticee was not found guilty of violating Regulation 4(1)(2)(a) and (e) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, as the material on record did not conclusively establish creation of artificial volume or market manipulation.

Full text

Adjudication Order in respect of Shri. Amit Bhavsar 3/26/2009 Page 2 of 14 3. Based on the above facts, investigation into the affairs relating to buying and selling or dealing in the shares of the company was conducted by 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. Amit Bhavsar 3/26/2009 Page 3 of 14 institution/individuals/company by pledging the shares of the company during the period June 1 – August 31,2003. It is observed that the noticee in his reply dated April 17, 2005 to the summons dated March 22, 2005 provided partial information(i.e. statement of his demat account). Thereafter, vide summons dated April 19th 2005, it was clarified to the noticee that the information which he has furnished was not sufficient and therefore in terms of Section 11C(3) & 11C(5) his personal appearance alongwith desired details was necessary. 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. Amit Bhavsar 3/26/2009 Page 4 of 14 Imposing Penalties by Adjudicating Officer) Rules, 1995 {hereinafter referred to as “Rules”} was issued to the noticee on August 16, 2007 seeking reply of the Noticee as to why an inquiry should not be held against the noticee in respect of the violations alleged to have been committed by him. The said SCN came back to us undelivered with a remark “Not Claimed”.

Source: SecMarx — sebi:PKB/AO-18/2009. 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.