sebi:SD/AO/50/2010
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Facts / Headnote
Penalty imposed on Noticee for failure to comply with summons issued by Investigating Authority
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 11C(2)
Parties
- Mr. Sureshkumar P Jain
Holding
The Noticee, Mr. Sureshkumar P Jain, was found guilty of failing to provide necessary information and documents to the Investigating Authority of SEBI in response to three summons dated March 07, 2007, March 20, 2007, and April 05, 2007, and a penalty of Rs. 5,00,000/- was imposed under Section 15A(a) of the SEBI Act, 1992.
Full text
Page 2 of 12 the Noticee’s involvement in manipulation in the market in the scrip of KCL and offer Noticee’s comments in detail alongwith the required information/documents. It is alleged that the Noticee failed to comply with the said summons and failed to submit the information/documents to the Investigating Authority. It is observed from the available records that Noticee had duly received the said summons, the details of which are produced in later part of this order.
Page 3 of 12 7. It is noted that no reply has been received from the Noticee. 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 and accordingly was advised to attend the hearing on January 13, 2009 but the said hearing notice which was sent by Hand Delivery was returned undelivered with the remark ’Person Left’. Therefore, another Hearing Notice was sent at the last known address for affixture of the same and accordingly Noticee was advised to appear on May 04, 2010. However, the said Hearing Notice was not allowed to paste at the last known address of the Noticee. It be noted that Hearing Notices were sent at the same address where SCN was sent and SCN was duly received and acknowledged by the Noticee. It is noted that adequate efforts had been taken to deliver the Hearing Notices to the Noticee. It is the duty of Noticee to intimate his new address to me since the Noticee was very much aware of the said pending adjudication proceedings as Noticee had received SCN. However, neither the Noticee nor its authorised representative appeared before me. The Noticee has also failed to file any written submissions to that effect.
Page 4 of 12 be connected to each other & some of these clients were also observed to be connected to the KCL. Details of market & off-market transactions were provided to Noticee as Annexure A to the Letter & Summons 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. It is alleged that Noticee was involved in 88 such trades. During the investigation period Noticee purchased 1054531 shares and sold 773374 shares. Noticee also received 200000 shares from Prasad Tandel in off market on May 3, 2005 who had received 2,50,000 shares from Vijay B Shah on April 07, 2005. Vijay B Shah was observed to be transferring shares through off market deals to various entities of the group who subsequently sold these shares in the market.
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Source: SecMarx — sebi:SD/AO/50/2010. 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.