sebi:RA/DPS/277/2018
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Facts / Headnote
Violation established; penalty of Rs. 16,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15A
- s. 15F
Regulations
- Reg. 3
- Reg. 4
- Reg. 4(1)
Parties
- Shri Umashankar Agarwal
Holding
The Noticee violated Regulations 4(1) and 4(2)(a) & (e) of the PFUTP Regulations by acting as a conduit/front for Shri Bimlesh Kumar Mishra in offloading fraudulently dematted unlisted excess shares of SCCL to innocent investors, and a penalty of Rs. 16,00,000 under Section 15HA of the SEBI Act was imposed.
Full text
Adjudication Order in respect of Shri Umashankar Agarwal Page 2 of 20 2. Noticee filed the appeal seeking to set aside the Order of the Adjudicating Officer (AO) on the grounds that Noticee had informed of his changed address to SEBI as early as in November, 2006 and SEBI had recorded the same. However, the Show Cause Notice and Notice of Hearing were affixed at the old address of the Noticee. Therefore, the Noticee submitted that the AO grossly erred in passing the Order as the Order was passed ex-parte without being provided any opportunity of hearing to the Noticee. Vide
Adjudication Order in respect of Shri Umashankar Agarwal Page 3 of 20 5. SEBI had conducted investigation in the scrip of Somani Cement Company Limited (hereinafter referred to as “SCCL”), a listed public company, relating to buying, selling or dealing in the shares of SCCL and to ascertain whether there was any violation of the provisions of the SEBI Act and Regulations made there-under, for the period from July 02, 2004 to April 01, 2005.
Adjudication Order in respect of Shri Umashankar Agarwal Page 4 of 20 volume and the price went up from ` 1.83 on October 12, 2004 to `8.50 on January 11, 2005 and the daily average traded volume after the said corporate announcement increased to 2,32,890 shares during the period under investigation. Thus, it was evident that the spurt in the price and traded volume in the scrip of SCCL was as a result of the abovementioned false and misleading corporate announcements which were intentionally made by SCCL and its chairman and director, Shri Bimlesh Kumar Mishra (Shri Mishra), to create artificial market in the scrip of SCCL for offloading shares in the market.
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Source: SecMarx — sebi:RA/DPS/277/2018. 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.