sebi:PKK/AO/129/2010
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Facts / Headnote
Noticee found liable and penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 7
Parties
- Ms. Bimla Gupta
Holding
The Noticee violated Regulations 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations and was held liable under Section 15HA of the SEBI Act. A monetary penalty of Rs 1,00,000/- was imposed on the Noticee.
Full text
Page 2 of 9 connected clients who in turn offloaded the same in the market. Certain group of clients bought and sold shares of MCL substantially among themselves during the investigation period, which created artificial volume and affected the price of the scrip. Connection has been found among these clients either through common directors (in case of companies) or common address. Analysis of bank statements also revealed that there were fund transfers among some of these clients. One of such groups comprises of nine clients namely Vintel Securities Pvt. Ltd., Zenith Estates Ltd., S. J. Securities Pvt. Ltd. M/s. Dhamaka Trading and Constructions Pvt. Ltd. Shri Amit Goel, Shri Ramesh Arora, Ms. Bimla Gupta. Shri Prashant Khankari and Shri Akhilesh Kamal Prasad Mishra. As mentioned Smt. Bimla Gupta (hereinafter referred to as the ‘Noticee’) was one of the connected entities involved in manipulation of the scrip of MCL in a fraudulent manner. The activities of these entities facilitated the creation of artificial volume and influenced the price of the scrip of MCL.
Page 3 of 9 HA of the SEBI Act, the alleged violation of the abovementioned provisions of the SEBI Act. Consequent to Mrs. Rayudu being sent on deputation, Mr. Sandeep Deore was appointed as the AO vide SEBI Order dated November 23, 2007. SEBI vide 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 9 violated the provisions of Regulations 4(1), 4(2) (a) & 4(2) (e) of the PFUTP Regulations. 7. The SCN was sent to the Noticee through “Registered Post with A/d” and it was duly delivered. However, neither the Noticee nor her representative submitted any reply to the SCN. 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. I granted an opportunity of personal hearing to the Noticee by issuing a letter dated September 03, 2010 advising her to appear before me on September 27, 2010 for the personal hearing. The letter was sent by “courier” and was duly received by the Noticee on September 08, 2010. The Noticee however, did not appear before the undersigned for the said personal hearing. Therefore, I proceed with the matter on the basis of the material available on record.
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Source: SecMarx — sebi:PKK/AO/129/2010. 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.