sebi:PKK/AO/56/2011
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Facts / Headnote
Charges not established; case disposed of
Provisions invoked
- s. 15
- s. 15J
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- D. Krishna
Holding
The Adjudicating Officer held that the charges against the Noticee for violation of Regulations 3(a), (b), (c), (d), 4(1) and 4(2)(a) of the PFUTP Regulations did not stand established and disposed of the case accordingly.
Full text
Page 2 of 7 to Show Cause Notice (SCN). It is alleged that Noticee transferred through off market 61,100 shares to one Mr. Ashok Kumar Upadhyaya on January 18, 2005 which is after premature and misleading corporate announcement and the December 2004 quarter results. It is alleged that Noticee had offloaded the said shares in the market at higher prices through the said entity. The Noticee was thus alleged to have violated SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003 (hereinafter referred to as PFUTP Regulations.
Page 3 of 7 5. The AO considered the facts of the case and other materials available on record and decided to conduct an inquiry in the matter. The AO granted an opportunity of personal hearing to the Noticee and accordingly he was advised to attend the hearing on March 19, 2010. The authorized representatives of the Noticee appeared before the AO and submitted that an application under consent scheme could be filed by April 10, 2010. The consent application filed by the Noticee had seems been rejected by the High Powered Advisory Committee and another opportunity of personal hearing was granted to the Noticee on September 27, 2010. The representatives of the Noticee appeared before me and submitted that he would submit revised consent terms. As the revised terms were not acceptable, another opportunity of personal hearing was granted to the Noticee on February 23, 2011. The representatives of the Noticee appeared before me and made oral submissions followed by written submissions. The Noticee inter-alia submitted that “KEWL had denied that the statements made by it were misleading in any way. The carrying on of off-market transactions by Mr. D. Krishna with the promoters/ directors of KEWL cannot by itself be a charge. In this regard, reliance is placed on the observation of the Hon’ble Securities Appellate Tribunal, Mumbai, in the matter of Amrik Singh versus Securities and Exchange Board of India in Appeal No. 30 of 2010, wherein it has been stated that the transfer of sha
Page 4 of 7 the announcement of quarterly results by KEWL on January 11, 2005 upto January 18, 2005, as the price of shares of KWEL on the last said date was Rs. 13.40 per share. The price movement data of the shares of KEWL at Mumbai Stock Exchange during the period from Jnauary 1, 2005 to January 31, 2005 is set out in the attachment marked Annexure 2.
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Source: SecMarx — sebi:PKK/AO/56/2011. 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.