sebi:RA/JP/103-111/2017
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Facts / Headnote
Violations established against Noticee Nos. 1-9; monetary penalties imposed under SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 12
- s. 15J
- s. 15F
Regulations
- Reg. 7
- Reg. 3
- Reg. 7(1)
- Reg. 13
- Reg. 10
- Reg. 13(1)
- Reg. 13(3)
- Reg. 14
- Reg. 58
- Reg. 64
- Reg. 8(A)
- Reg. 2e(i)
Holding
Noticee Nos. 1-9 were held to have violated PFUTP, SAST takeover/disclosure and PIT disclosure provisions in the scrips of Rajratan Global Wire Ltd. and Velan Hotels, and monetary penalties were imposed, including Rs. 4,00,000 on Noticee No. 2 for violation of regulation 13(3) read with 13(5) of PIT Regulations.
Full text
Page 2 of 54 Ms. Neha Bipin Raval, (5) Mrs. Kiran Ramneek Jain, (6) Mr. Janak Hasmukhlal Kapadia, (7) Mr. Krupa Bhaskar Rao, (8) Mr. Krishankumar Brahambhatt and (9) Ms. Prarthana Brahambhatt (hereinafter referred to as ‘the Noticee No. 1 to 9 respectively and all may also be referred to as "the Noticees" collectively) were revealed to have violated provisions of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations’), the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as "SAST Regulations") and the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as 'PIT Regulations').
Page 3 of 54 5. Here, it is important to mention that the said common SCN was also issued against Mr. Muthukumara Ramlingam and Mr. M. R. Gautam (who were shown therein as Noticee No. 10 and 11 respectively) for the violation of regulation 8(A) of the SAST Regulations and regulation 13 (3) of the PIT Regulations. However, in respect of the SCN, they had filed settlement application under the SEBI (Settlement of Administrative and Civil Proceedings) Regulations, 2014 (hereinafter referred to as ‘Settlement Regulations’) as informed by the Enforcement Department vide their Office Note 853/2015 dated September 03, 2015 stating that adjudication proceeding may be continued in respect of said 2 entities except passing of the final order which may be kept in abeyance till the said settlement application (numbered as 2987/2015) is disposed of. It is observed from records that said settlement application is still pending before SEBI and as on date and has not been intimated to the undersigned as disposed of.
Page 4 of 54 Annexure III along with SCN. The allegations levelled against the Noticees No. 1-9 in the SCN based on the findings under investigations, are mentioned below.
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Source: SecMarx — sebi:RA/JP/103-111/2017. 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.