sebi:PKK/AO/127/2010
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Facts / Headnote
Charges do not stand established; matter disposed of
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Shri Sandeep Kadam
Holding
The charges against the Noticee under Regulations 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations, 2003 do not stand established, and the matter stands disposed of without imposition of penalty.
Full text
Page 2 of 6 2. During the investigation it was found that certain entities connected to each other acting as clients with some brokers carried out large number of trades both off market and on market in the scrip of MCL. The transfer of shares of MCL in the off market among the entities further established the linkages between them. These entities used to complete many of the market obligations by the shares received through off market transfers. They were involved in creation of artificial volume and liquidity which led to price increase to unrealistic levels as mentioned above. Investigation revealed that Shri Sandeep Kadam (hereinafter referred to as the ‘Noticee’) was one of the connected entities found involved in dealing in the scrip of MCL in the above manner during the investigation period.
Page 3 of 6 Order dated August 17, 2010 appointed the undersigned as the AO in the instant matter subsequent to the transfer of Mr. Deore to the Enforcement Department.
Page 4 of 6 8. In the absence of any written reply submitted by the Noticee, the AO considered the matter on the basis of the material available on record. The AO accordingly decided to conduct an inquiry and granted an opportunity of personal hearing to the Noticee by issuing a letter dated July 19, 2010 advising the Noticee to appear before him on August 05, 2010. The letter was sent by “Speed Post with A/d” which was returned undelivered. Subsequently, the undersigned issued a notice of hearing granting an opportunity of personal hearing on August 26, 2010. The notice of hearing was served on the Noticee by affixing the same at the Noticee’s last known address, in accordance with Rule 7(c) of the Adjudication Rules, 1995. The Noticee or his authorised representative however, did not appear before the undersigned for the personal hearing. Therefore, I proceeded with the inquiry taking into account the facts and material as available on record.
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Source: SecMarx — sebi:PKK/AO/127/2010. 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.