sebi:PKK/AO/148/2010
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Facts / Headnote
Penalty of Rs. 2,00,000 imposed under Section 15A(a) of the SEBI Act, 1992
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15I
- s. 15J
- s. 11C
- s. 12
Parties
- M/s. Fineline Mercantile Company (P) Ltd.
Holding
It is established that M/s. Fineline Mercantile Company (P) Ltd. failed to comply with the summons issued by the Investigating Authority and thereby violated Sections 11C(2) read with 11C(5) of the SEBI Act. The Noticee is liable to and is imposed a penalty of Rs. 2,00,000 under Section 15A(a) of the SEBI Act.
Full text
Page 2 of 10 2. During the investigation it was found that certain entities connected to each other acting as clients with some brokers dealt in the scrip of MCL in a fraudulent manner which resulted in the manipulation of the price of MCL. Their trading contributed in creation of artificial volume and influenced unrealistic price increase.
Page 3 of 10 (Procedure for holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the ‘Adjudicating Rules’) to inquire into and adjudge under Section 15A (a) of the SEBI Act, 1992 (hereinafter referred to as the ‘SEBI Act’) the alleged violation by the Noticee 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,
Page 4 of 10 6. 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 October 08, 2010 advising the Noticee to appear before him on October 21, 2010 for the personal hearing. 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,
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Source: SecMarx — sebi:PKK/AO/148/2010. 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.