sebi:SD/AO/06/2009
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Facts / Headnote
Noticee found guilty of failure to furnish information to the Investigating Authority; penalty of Rs. 7,00,000 imposed under Section 15A(a) of the SEBI Act, 1992
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 11C(2)
Parties
- Shri Umesh Choukekar
Holding
Shri Umesh Choukekar failed to comply with summonses/notices dated March 07, 2007, March 20, 2007 and April 05, 2007 issued by the Investigating Authority in violation of Section 11C(2) and 11C(3), and is liable to monetary penalty under Section 15A(a) of the SEBI Act.
Full text
Page 2 of 9 APPOINTMENT OF ADJUDICATING OFFICER 4. Ms. Babita Rayudu was appointed as the Adjudicating Officer vide order of SEBI dated August 31, 2007 under section 15-I of the Act r/w rule 3 of SEBI (Procedure for holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the Adjudicating Rules) to inquire into and adjudge under Section 15A(a) of the SEBI Act, the alleged violation of the provisions of Section 11C(2) & 11C(3) of the SEBI Act.
Page 3 of 9 CONSIDERATION OF EVIDENCE AND FINDINGS 9. Brief facts giving rise to the present proceedings are as under: a) It was observed that during the period February 10, 2005 to September 16, 2005, a group of clients including the Noticee were observed to be transferring shares among themselves in off market & dealing in the scrip of KCL in the market. These clients were found to be connected to each other & some of these clients were also observed to be connected to the KCL. Details of market & off-market transactions done by the group was given to the Noticee as Annexure A to the Letter Dated March 07, 2007. The group purchased 81,02,185 shares accounting for 24.43% of gross purchases & sold 64,13,786 shares accounting for 19.45% of gross sales of the market. The group was also observed to be involved in 228 trades which were executed at a price difference of 0.5% or more than the last traded price or last closing price.
Page 4 of 9 behalf as it may consider necessary if the furnishing of such information or documents are necessary. 11. It is noted that Investigating Authority issued Summons along with a letter enclosed dated March 07, 2007 to the Noticee seeking certain information/documents. The queries contained in the said letter are the following: i. Relationship with the company KCL, its promoters, directors & associate companies & all individuals/entities mentioned in Annexure A. ii. Details of purchase, sale & off market transactions done in the scrip of KCL for the period from January 01, 2005 to December 31, 2005 including date, name of counter party, quantity & price and also copies of demat accounts for the said period. iii. All bank account statements for the period January 01, 2005 to December 31, 2005 showing details of payments made/received for the purchase/sale of shares of KCL & financing received, if any, for the purchase of shares.
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Source: SecMarx — sebi:SD/AO/06/2009. 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.