sebi:PKK/AO/25/2011
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4
Parties
- Ms. Ushaben Bhandari
Holding
The Noticee, Ms. Ushaben Bhandari, was held to have violated Regulations 4(1) and 4(2)(a) & (e) of the PFUTP Regulations by selling shares of SCCL after false and misleading corporate announcements, and was imposed a monetary penalty of Rs. 1,00,000 under Section 15HA of the SEBI Act.
Full text
Page 2 of 11 large number of shares in excess of its paid up capital. 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.
Page 3 of 11 deputation to IRDA, Shri Sandeep Deore was appointed as AO in the instant matter vide order dated November 23, 2007. SEBI vide order dated August 17, 2010 appointed the undersigned as the AO consequent to the transfer of Shri Deore to the Enforcement Department.
Page 4 of 11 9. Accordingly, the undersigned granted an opportunity of personal hearing to the Noticee by issuing a letter dated August 26, 2010 advising the Noticee to appear before him on September 08, 2010 for the personal hearing. The Noticee made inter alia the following submissions in reply to the SCN through her letter dated September 02, 2010: ‘That she had submitted various documents to SEBI during 2006. That the WTM had passed an Order No. WTM/MSS/IVD/139/8 dated December 17, 2008 in the matter of SCCL. This order itself is answer of all questions in SCCL. All the management and administration of SCCL was done by Shri Bimlesh Kumar Mishra and Shri Ashwini Singh. In the management of SCCL, the Noticee or no one of her family members was attached. During the period from July 02, 2004 to April 01, 2005 the Noticee or no one of her family members was attached with SCCL. That the Noticee and her family members were totally unknown about the corporate announcements made by SCCL as they did not play any part in the management or administration of SCCL. That the Noticee was an ordinary small investor and had purchased 48300 shares of SCCL on May 18, 1997 from Vishal Fin Stock Ltd. with an intention to earn more profit and for that she paid Rs.60375/- at that time. In the year 1997-98, 48300 shares of SCCL were mentioned in her block of Investment Shares Register. That in the month of November 2004 she found better rate in the scrip of SCCL and sold the shares th
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Source: SecMarx — sebi:PKK/AO/25/2011. 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.