sebi:PKK/AO/244/2010
Facts / Headnote
Noticee found to have violated PFUTP Regulations; monetary penalty of Rs. 1,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations relied on
- SEBI (PFUTP) Regulations, 2003 — 4(1)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(a)
- SEBI (PFUTP) Regulations, 2003 — 4(2)(e)
Parties
- Shri Madhusudhan Thakkar
Holding
The Noticee violated Regulations 4(1), 4(2)(a) and (e) of the PFUTP Regulations and is liable for monetary penalty under Section 15HA of the Act. A monetary penalty of Rs. 1,00,000 was imposed on Shri Madhusudhan Thakkar.
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 Madhusudhan Thakkar (hereinafter referred to as the Noticee) is one of the entities who allegedly received shares from Shri 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 15HA 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. During the personal hearing, the Noticee has inter alia submitted the following: “The SCN dated June 18, 2008 was received by my wife Mrs. Labhuben but by oversight I could not submit a reply. If you give a copy of the SCN, I shall submit a written reply to you by September 25, 2010. As far as I recollect the dealings in the shares of the scrip M/s. Somani Cement Co. Ltd. had been carried out by one Mr. Mahendrabhai Shah on my behalf. I have signed the DP Instruction Slips and Cheque books signed and handed over to him for doing the transactions. I have not received any money from Mr. Shah or anyone else for allowing to operate the accounts but had been done as we were friends. As soon as I was told by one of my relatives that such dealings should not be done as it is not right I have stopped my dealings with Mr. Shah and received back the remaining DP Slips and Cheque leaves. I have further stopped allowing him to use my account.”
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Source: SecMarx — sebi:PKK/AO/244/2010. 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.