sebi:SRP/DL/AO:142/2010
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Facts / Headnote
Noticee held guilty of non-compliance with summons under section 11C(3) and 11C(5) of the SEBI Act; penalty of Rs. 2,00,000 imposed under section 15A(a); Noticee given benefit of doubt on PFUTP Regulations 4(2)(a) and 4(2)(e) charges
Provisions invoked
- s. 11
- s. 15A
- s. 15
- s. 15J
- s. 11C
- s. 12
Regulations
- Reg. 7
- Reg. 6
- Reg. 4
- Reg. 4(2)
- Reg. 8
- Reg. 8(1)
Holding
The Noticee was held guilty of failing to comply with summonses issued under sections 11C(3) and 11C(5) of the SEBI Act, violating section 11C(2) of the SEBI Act and regulation 8(1) of the PFUTP Regulations, and a penalty of Rs. 2,00,000 was imposed under section 15A(a). The Noticee was not held guilty of violating regulations 4(2)(a) and 4(2)(e) of the PFUTP Regulations relating to cross deals and synchronized trades.
Full text
Page 2 of 14 documents and also failed to appear before the Investigating Authority on December 04, 2006 and December 13, 2006, as required.
Page 3 of 14 8. The SCN was delivered to the Noticee through Eastern Regional Office of SEBI at Kolkata; however, the Noticee did not respond to the same. Therefore, considering the facts of the case it was decided to conduct an inquiry in the matter and for the purpose an opportunity of hearing was granted to the Noticee on January 07, 2010 vide notice dated December 09,
Page 4 of 14 • It was not aware of the trades of other stock brokers or their clients who traded in the scrip of AICL or the volumes generated by them. It traded independently and only through the stock brokers Shyam Lal Sultania and Ashok Kumar Kayan and is not aware that the transactions entered into by the stock brokers were synchronized or cross deals in nature. In so far the Noticee is concerned it had placed the orders for buy and sale in the scrip and on confirmation from the stock brokers regarding the execution of trades it had paid money and received deliveries or made deliveries and received pay outs.
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Source: SecMarx — sebi:SRP/DL/AO:142/2010. 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.