sebi:SD/AO/83/2010
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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
- M/s. Vishal Kumar Textiles Pvt. Ltd.
Holding
The Noticee was found guilty of failing to comply with three summons issued by the Investigating Authority of SEBI and a penalty of Rs. 5,00,000 was imposed under Section 15A(a) of the SEBI Act for failure to provide necessary information/documents to the Investigating Authority.
Full text
Page 2 of 11 involvement in manipulation in the scrip of KCL and offer its 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 11 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. The said Hearing Notice was sent for pasting and was pasted on May 20, 2010 and the Noticee was advised to attend the hearing on June 07, 2010. But on the date of hearing neither the Noticee nor its authorised representative appeared before me and therefore the inquiry is proceeded with taking into account the facts and material available on record.
Page 4 of 11 is liable to the 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.
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Source: SecMarx — sebi:SD/AO/83/2010. 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.