sebi:WTM/KMA/IVD/287/07/2010
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Facts / Headnote
Show cause notices dated April 7, 2004 disposed of without any directions; noticees given benefit of doubt
Provisions invoked
- s. 19
Regulations
- Reg. 4
- Reg. 11
- Reg. 4(b)
- Reg. 4(c)
Parties
- HB Stockholdings Limited
- Har Sai Investments Limited
- RRB Securities Limited
Holding
The show cause notices dated April 7, 2004 issued to HB Stockholdings Limited, Har Sai Investments Limited and RRB Securities Limited for alleged violation of Regulation 4(b), (c) and (d) of the PFUTP Regulations, 1995 are disposed of without any directions.
Full text
Page 2 of 10 stated that, it had observed that the share price had moved up from Rs.147.25/- on December 1, 2000 to Rs.289.10/- on January 19, 2001. BSE had also noticed that HB Stockholdings Limited (hereinafter referred to as HBSL) had traded through the stock broker, UTI Securities Exchange Limited and HSIL while trading through the stock broker, ACK Capital Management Private Limited had bought 9,645 shares of the company. It was also observed that RRBSL had traded through the stock broker, Merwanjee Securities Limited and purchased 8,165 shares of the company. Based on the said reports, SEBI had conducted an investigation into the affairs of HBSL, RRBSL and HSIL for the possible violations of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the SEBI Act) and the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 1995 (hereinafter referred to as the PFUTP Regulations) while dealing in the shares of the company during the relevant period. Hereinafter HBSL, RRBSL and HSIL would be collectively referred to as the noticees and individually by their respective names.
Page 3 of 10 was granted to the noticees on September 3, 2004 before my predecessor. The noticees were also advised to file their replies before the date of the hearing. Subsequently, HBSL, vide letter dated August 25, 2004 had requested for documents and for deferring the hearing so scheduled. HSIL, vide letter dated August 28, 2004 inter alia stated that it did not receive the show cause dated April 7, 2004 and therefore requested to cancel the hearing. It also stated that all correspondence be sent to its address at H-72, Connaught Circus, New Delhi-110001. Thereafter, certain correspondence took place between the noticees and SEBI for copies of documents. In the meanwhile, the Hon’ble High Court of Judicature at Bombay on a writ petition filed by HBSL, vide order dated September 30, 2004 directed “We request the Member, SEBI to provide copies of the documents which are relevant for the petitioner to answer the show cause notice issued by the Board. No further directions are necessary in this writ petition. This writ petition is accordingly disposed of.” Thereafter, an opportunity of hearing was granted to the noticees on November 21, 2008 before me and the same was rescheduled to December 11, 2008 on the request of the noticees. On the said date, the noticees made further requests for documents. The photocopies of the reports of NSE and BSE and the soft copies (in a floppy diskette) of the trade and order logs mentioned in the show cause notice were forwarded to the noti
Page 4 of 10 certain other matters alleged to have committed by them more or less during the same period, it was thought fit in the interest of justice to conclude all the hearings before proceeding with the individual cases.
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Source: SecMarx — sebi:WTM/KMA/IVD/287/07/2010. 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.