sebi:SD/AO/100/2010
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Facts / Headnote
Noticee found guilty of violating Section 11C(2) and 11C(3); penalty of Rs.75,000 imposed under Section 15A(a)
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 11C
Parties
- Mr. Deepak Todkar
Holding
The Noticee failed to comply with three summonses dated February 13, 2007, March 9, 2007 and April 4, 2007 issued by the Investigating Authority in violation of Section 11C(2) and 11C(3) of the SEBI Act, and is therefore liable to penalty under Section 15A(a), imposed at Rs.75,000.
Full text
Page 2 of 9 ‘SEBI Act’), against Mr. Deepak Todkar on account of his failure to furnish to the IA appointed by SEBI, information/documents regarding his dealings in the scrip of MCL by failing to comply with the summonses and cooperate with the Investigating Authority.
Page 3 of 9 7. On considering the facts of the case, it was decided to conduct an inquiry in the matter and the Noticee was granted an opportunity of personal hearing on August 3, 2010 at the SEBI Head Office. The Hearing Notice was attempted to be served on the Noticee by affixture at the Noticee’s last known address. Accordingly, the said hearing notice was affixed and the hearing held on the scheduled date. During the hearing, the Noticee had stated that he does not have any justification for not having filed any reply to the SCN and that his nephew had collected all the copies of the Notices sent by SEBI and said that he would handle the matter by himself. That the Noticee belongs to lower middle class family and studied upto seventh standard and six years ago, the Noticee was lured by his nephew who promised to get him a job as the Noticee was in dire necessity of a job at that point of time and accordingly collected copies of the Noticee’s ration card, driving license etc and later nothing was done by the nephew in this regard. However, the Noticee had stated that they have been misused by his nephew to open demat accounts etc in the name of the Noticee and trading has been done by the nephew himself. Thus the Noticee took the plea that he was ignorant about the securities market and is in no way connected to any of the connected entities. The inquiry is proceeded with taking into account the facts and material available on record.
Page 4 of 9 associated with the securities market to furnish such information or to preserve and produce all the books, registers, other documents and record of the company or the intermediary, as may be required by the Investigating Authority. Further, Section 11C (3) empowers the Investigating Authority to require any intermediary or any person associated with securities market in any manner to furnish such information to, or produce such books, or registers, or other documents, or record before him or any person authorized by it in this behalf as it may consider necessary if the furnishing of such information or documents are necessary.
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Source: SecMarx — sebi:SD/AO/100/2010. 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.