sebi:SD/AO/36/2010
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Facts / Headnote
Penalty imposed on Noticee for failure to furnish information to Investigating Authority
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 11C
Parties
- Laxmans Singh Saijari
Holding
The Noticee, Shri Laxmans Singh Saijari, was held liable for failure to comply with the summons/notice dated February 2, 2007 issued by the Investigating Authority, and a penalty of Rs. 1,00,000/- was imposed under Section 15A(a) of the SEBI Act, 1992.
Full text
Page 2 of 7 APPOINTMENT OF ADJUDICATING OFFICER 4. The undersigned was appointed as the Adjudicating Officer vide order of SEBI dated November 23, 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 15 A (a) of the SEBI Act, the alleged violation of the provisions of Section 11C (2) & 11C (3) of the SEBI Act.
Page 3 of 7 9. The allegation against the Noticee is that he failed to comply with the summons/Notice dated February 2, 2007 issued by the Investigating Authority and in view of the same, the Noticee is liable to penalty prescribed under Section 15 A (a) of the SEBI Act. In this regard it is pertinent to note that Section 11 C (2) of the SEBI Act empowers the Investigating Authority of SEBI to require a manager, managing director, officer and other employee of a company and every intermediary or any person 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 11 C (3) empowers the Investigating Authority of SEBI 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.
Page 4 of 7 to comply with the above stated summons/notice. It is noted from the details stated in the preceding paragraphs that the Investigating Authority was seeking explanation as to the nature of transactions which indicated his involvement in the manipulation in the market & offer the Noticee’s comments in detail along with the queries mentioned on page 3 of this Order. In this regard, it is pertinent to note that the Noticee was also informed that his personal appearance was not required at that stage of inquiry and providing information would be considered as compliance of summons. In spite of the above, the Noticee failed to provide even such basic details to the Investigating Authority. It is also pertinent to note that the Noticee also failed to submit proper reply to the show cause notice and also failed to appear for personal hearing before me. The said actions of the Noticee are clearly indicative of his non co-operative attitude and also the fact that the Noticee deliberately wants to avoid any inquiry in the said matter. I have taken a serious note of the said attitude of the Noticee.
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Source: SecMarx — sebi:SD/AO/36/2010. 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.