sebi:PKK/AO/242/2010
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Facts / Headnote
Monetary penalty of Rs. 1,00,000 imposed on the Noticee under Section 15HA, payable within 45 days of receipt of the order.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
Parties
- Shri Anil Kantilal Shah
Holding
The Noticee violated Regulations 4(1), 4(2)(a) and 4(2)(e) of the PFUTP Regulations by receiving unlisted excess shares off-market and selling them, and is liable to a monetary penalty of Rs. 1,00,000 under Section 15HA of the Act.
Full text
Page 2 of 9 had issued a large number of shares in excess of its paid up capital. It was further observed that Shri Bimlesh Kumar Mishra had issued and dematerialized large number of shares which were not listed on the stock exchanges. The shares were transferred to a group of connected entities through off-market deals who in turn sold the shares in the market by fraudulent and manipulative manner. Thus a large number of innocent investors were defrauded by purchasing the said shares which were issued fraudulently. Shri Anil Kantilal Shah (hereinafter referred to as the ‘Noticee’) is one of the entities who allegedly received shares from Mr Mishra and other major share holders of SCCL through off market and traded in the above manner.
Page 3 of 9 Show Cause Notice, Reply and Personal Hearing 5. The AO issued a notice dated June 18, 2008 (hereinafter referred to as the ‘SCN’) under Rule 4 of the Adjudication Rules to the Noticee to show cause as to why an inquiry should not be held against him and penalty be not imposed under Section 15 HA of the Act for his alleged violation of the provisions of Regulations 4 (1), 4 (2) (a) and 4 (2) (e) of the PFUTP Regulations.
Page 4 of 9 8. The undersigned has given another opportunity of hearing vide letter dated August 26, 2010 advising the Noticee to appear before him on September 08 2010. The hearing was conducted at the Western Regional office of the SEBI at Ahmedabad. The Noticee appeared before the undersigned for the said personal hearing at the scheduled date and time.
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Source: SecMarx — sebi:PKK/AO/242/2010. 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.