sebi:PKK/AO/143/2010
Facts / Headnote
Charges not established - matter disposed of without penalty
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 11C
- s. 12
Parties
- M/s. Ritedeal Trading Company Pvt. Ltd.
Holding
The charges against the Noticee for non-compliance with summons under Sections 11C(2) and 11C(3) do not stand established and the matter is accordingly disposed of.
Full text
Page 2 of 6 involved in creation of artificial volume and liquidity which led to price increase to unrealistic levels as mentioned above. The investigations revealed that M/s. Ritedeal Trading Company Pvt. Ltd. (hereinafter referred to as the ‘Noticee’) is one of the connected entities who has engaged in such activities For the purpose of further investigation, the Investigating Authority (hereinafter referred to as ‘IA’) appointed by SEBI sought various information and documents from the Noticee relating to its dealings in the scrip of KCL. It is alleged that IA, issued summonses dated March 07, 2007, March 20, 2007 and April 05, 2007 to the Noticee and were duly received by the Noticee. The Noticee was required to furnish information regarding its dealings in the scrip of KCL. It is alleged that the Noticee failed to furnish the information sought and the same had resulted in non-compliance of the summonses. The Noticee is therefore alleged to have violated the provisions of Sections 11C(2) and 11C(3) of the SEBI Act.
Page 3 of 6 of Section 11 C (2) and Section 11 C (3) of the SEBI Act. The allegations against the Noticee include its failure to furnish the information sought for and failure to appear before the IA as required. The SCN was sent to the Noticee through “Registered Post with A/d” but no acknowledgement of delivery was received. Therefore the SCN was sent by Hand Delivery to the Noticee at its new address which was obtained from the Ministry of Company Affairs Website. However, the same returned undelivered with the remark “office not there”. Thereafter, the SCN was served on August 19, 2010 by Affixture at the last known address of the Noticee in accordance with Rule 7(c) of the Adjudication Rules. The Noticee has not submitted any reply in response to the SCN.
Page 4 of 6 by the IA, SEBI? b. If whether the Noticee is liable for monetary penalty prescribed under Section 15A (a) of the SEBI Act for the aforesaid violation? c. If, yes what should be the quantum of monetary
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Source: SecMarx — sebi:PKK/AO/143/2010. 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.