sebi:SRP/RK/AO-67/2010
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Facts / Headnote
Penalty of Rs.5,00,000 imposed on the Noticee under Section 23H of SCRA
Provisions invoked
- s. 13
- s. 16
- s. 18
- s. 23
- s. 23H
- s. 23J
Holding
The Noticee violated section 16 of SCRA and section 13 read with section 18 of SCRA by entering into an off-market, non-spot-delivery transaction in 11 lakh shares of IDFC Ltd., and is liable to a penalty of Rs.5,00,000 under section 23H of SCRA.
Full text
Page 2 of 6 the alleged violation of the provisions of section 16 of SCRA and section 13 read with section 18 of SCRA. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
Page 3 of 6 6. An opportunity of hearing was granted to the Noticee on March 19, 2010 vide Notice dated March 4, 2010. However, vide e-mail dated March 11, 2010 the Noticee requested to reschedule the hearing. Accordingly, the hearing was rescheduled to March 25, 2010. The authorized representatives of the Noticee, namely, Mr. Pesi Modi – Advocate and Ms. Poonam Gadkari – Advocate appeared on behalf of the Noticee for hearing and reiterated the
Page 4 of 6 the month of June 2006. However, he has contented that he has not violated any of the provisions of SCRA while transacting in the shares of IDFC Ltd. during its IPO. He has submitted that the provisions of sections 13, 16 and 18 of the SCRA relate to the date when the relevant ‘contract’ was entered into and not the date of the delivery of shares or the date of payment for the same. Consequently, these provisions do not apply to the impugned contract entered into on August 10, 2005, as on that date the shares of IDFC Ltd. were not listed on any recognized stock exchange.
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Source: SecMarx — sebi:SRP/RK/AO-67/2010. 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.