sebi:SD/AO/38/2010
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Facts / Headnote
Allegation not established; matter disposed of without penalty
Provisions invoked
- s. 15
- s. 15H
Regulations
- Reg. 4
- Reg. 8
Parties
- M/s. S.T. Services Ltd.
Holding
The allegation that M/s. S.T. Services Ltd. violated Regulations 4(2)(a) and 4(2)(e) of the PFUTP Regulations, 2003 does not stand established and the matter is accordingly disposed of.
Full text
Page 2 of 8 APPOINTMENT OF ADJUDICATING OFFICER: 2. On the basis of the said investigation, Ms. Babita Rayudu was appointed as the Adjudicating Officer vide Order of SEBI dated September 20, 2006 under section 15-I of the SEBI Act read with Rule 3 of SEBI (Procedure for holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the ‘Adjudication Rules’) to inquire into and adjudge under Sections 15HA of the SEBI Act, the alleged violation of the provisions of Regulations 4 (2) (a) and 4 (2) (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as the ‘PFUTP Regulations) by the Noticee, M/s. S. T. Services Ltd.
Page 3 of 8 6. The Noticee was granted an opportunity of personal hearing before me on February 02, 2010 at ERO, SEBI, Kolkata which was attended by the Noticee through its authorized representative.
Page 4 of 8 10. During the course of the said investigation, it was observed that one of the previous directors of the Noticee, Shri B. K. Gupta was also a director of OCPL. It was further observed that the registered office of STSL was same as the address of OCPL. Further, another director of STSL, Shri Sushanta Mondal was also found to be the director of another company namely M/s. Suyash Shares Pvt. Ltd. (SSPL). As per the findings of the Investigation Report (IR), SSPL had acquired 2,33,400 shares of STSL during the period February 2005 to September 2005 and was one of the top shareholder of STSL during the period under investigation. By virtue of these findings showing nexus between the Noticee and other entities who had traded in the scrip of STSL, it is alleged that the Noticee had facilitated transactions which were not genuine and had created false and misleading appearance of trading and price manipulation in the scrip.
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Source: SecMarx — sebi:SD/AO/38/2010. 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.