sebi:SD/AO/33/2009
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Facts / Headnote
Violation not established; matter disposed of
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 19
- s. 11(3)
- s. 15J
- s. 11C
- s. 11C(3)
- s. 11C(5)
Parties
- M/s Stocknet International Ltd.
Holding
The alleged violation of non-compliance with summonses under Section 11C(3) read with Section 11C(5) does not stand established and the matter is accordingly disposed of without penalty.
Full text
Page 2 of 12 directors and their dealings in the shares of SNIL. It is alleged that the noticee failed to comply with the said summonses and failed to submit the information to the investigating authority.
Page 3 of 12 Noticee (hereinafter referred to as “AR”) on November 06, 2008. During the hearing, the AR submitted the reply to the show cause and also submitted all the information sought in the summonses. The AR further sought time till November 24, 2008 to make additional
Page 4 of 12 8. The Noticee also submitted another written submission based on the personal hearing conducted vide a letter dated November 23, 2008. The summary of these submissions are as under: • That the Investigating Authority issued the summons under Sec. 11(3) and thus acted ultra vires to the powers granted to him. • That since the summons were issued to the Noticee under Sec. 11(3), a proceeding for violation of Sec. 11C(3) and 11C(5) would be against the established principles of law. • That all the summonses were a mere eyewash technique without providing a real opportunity of complying with the said summonses. • That the summonses issued to the Noticee were vague to the extent that they did not mention details of the information being sought by the Investigating Authority. The summonses thus issued were not in accordance with applicable law as enshrined in Code of Civil Procedure, 1908. • That reliance was placed on Supreme Court judgment in the matter of Barium Chemicals Ltd. v. A.J. Rana where the nature of summons were discussed. The order of SAT in the matter of Top Telemedia Ltd. v. SEBI was also cited on the issue of insufficient time provided to the Noticee. • That due to heavy rainfall and flooding in the Howrah region, most of the records of the Noticee were destroyed and hence it was impossible for them to comply with the later summons.
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Source: SecMarx — sebi:SD/AO/33/2009. 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.