sebi:SRP/DL/AO-25/2009
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Facts / Headnote
Violation established; penalty of Rs.15,00,000 imposed under Section 15HA
Provisions invoked
- s. 15
- s. 12
- s. 12A
- s. 15H
- s. 15J
Regulations
- Reg. 3
Parties
- Rajkumar Jain
Holding
The Noticee violated Section 12A(a), (b) and (c) of the Act and Regulations 3 and 4(1) of the PFUTP Regulations by acquiring 40,000 IDFC shares cornered from the retail category through key operator Purshottam Budhwani for unjust gain. A penalty of Rs.15,00,000 under Section 15HA was imposed.
Full text
Page 2 of 12 corner shares from the quota for retail investors in the IPOs of various companies. 4. Rajkumar Jain (hereinafter refereed to as “Noticee”), was prima facie identified as one of the financiers of the master account holders and an ultimate beneficiary of the shares cornered by the key operators in the IPO of IDFC Limited (hereinafter referred to as “IDFC”) during the aforesaid period.
Page 3 of 12 hearing date was rescheduled to September 19, 2006, which was attended by the Noticee himself. The submissions made by the Noticee were recorded. The information/documents sought from the Noticee at the time of hearing were forwarded by him vide his letter dated September 30, 2006.
Page 4 of 12 to the issue. Other than the said three transactions he had no other dealing with Shri Budhwani of whatsoever nature. d) The deal in regard to purchase of 40,000 shares of IDFC with Shri Budhwani was finalized on August 7th or 8th, 2005, @ Rs.41 per share. It was a normal business decision. The Noticee took risk anticipating that on listing the share prices will go up. He had no means to know that how Shri Budhwani acquired those shares. The Noticee only had doubt that whether Shri Budhwani was in possession of those shares, therefore he made payment to him only after the shares were credited in the Noticee’s demat account. e) The shares were sold @ Rs.66 per share on September 7, 2005 and the Noticee booked profit of Rs.10.00 lakh from the said transaction.
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Source: SecMarx — sebi:SRP/DL/AO-25/2009. 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.