sebi:WTM/MPB/MIRSD/13/2017
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Facts / Headnote
Complaint disposed of; Deepak Chaudhary warned
Parties
- Deepak Chaudhary
Holding
The complaint filed by Hopgage Limited dated October 20, 2015 against RKDK Capital Market Ltd. was disposed of on the ground that the contested transactions were a private dispute between Hopgage and Mr. Deepak Chaudhary, and no violation of SEBI-administered rules applicable to stock brokers by RKDK arose. Mr. Deepak Chaudhary was warned for misusing the letterhead of the registered stock broker.
Full text
Order in the matter of complaint filed by Hopgage Limited Page 2 of 9 Subsequently, a meeting of CSE’s officials was held on December 23, 2015 with RKDK which was represented by Mr. Deepak Chouhdary and Mr. Ramesh Kumar Agarwal Chief Executive of RKDK. It was submitted by the representatives of RKDK that they wish to resolve the issue by meeting Mr. Patel in the 2nd week of January, 2016 and a date be fixed after consent from Mr. Patel. CSE sent an email on December 24, 2015 informing the above mentioned details to Mr. Patel. Vide email dated December 29, 2015, Mr. Patel replied to CSE requesting CSE to follow up with RKDK to ensure that all the information pertaining to the transaction is sent to CSE by January 15, 2016. He further stated that in the meantime, he is having wide ranging discussions with the experts/advocates and till then, he will refrain from commenting further on CSE’s email. He also stated that he will respond after getting full details from RKDK. Around the same time, the complainant filed a writ petition before Hon’ble High Court of Calcutta(W.P. No. 344/ 2017) on the same subject matter. Upon becoming aware of the said writ petition, CSE informed that in view of pendency of litigations, it could not proceed in the matter. Accordingly, as the matter was sub-judice, it was disposed of in SCORES.
Order in the matter of complaint filed by Hopgage Limited Page 3 of 9 In such circumstances, Sebi is requested to consider and decide the complaint dated October 20, 2015 made to it, in accordance with law, after affording a reasonable opportunity of hearing to the writ petitioner and to the parties against whom the complaint has been made. Sebi authorities will also be at liberty to hear such other parties and consult such documents as they deem necessary, for the purpose of disposal of the complaint. It is expected that the proceedings are disposed of by Sebi within a period of eight weeks from the date of communication of this order to them.”
Order in the matter of complaint filed by Hopgage Limited Page 4 of 9 Hopgage i) It has signed the consent terms with RKDK represented by Mr. Deepak Chaudhary which were filed before the Learned Chief Metropolitan Magistrate at Calcutta in P.S Case No. 481/2016, on August 17, 2017. Under the terms of settlement, Hopgage has undertaken to withdraw the complaint made before SEBI on fulfilment of commitment made by RKDK represented by Mr. Deepak Chaudhary under the Settlement agreement. Accordingly, Hopgage requested SEBI to refrain from passing any order/direction in the matter until November 17, 2017 which is last date of the cheque towards full and final settlement of the dispute between them. ii) Without prejudice to the settlement proceedings, Hopgage made the following submission- a. The father of Deepak Chaudhary i.e. Mr. Ram Kishore Chaudhary, has been a close trusted friend of Mr. Patel since 1980. In view of the close family relationship between Mr. Patel and Mr. Ram Kishore Chaudhary, Mr. Deepak Chaudhary was treated like a son by Mr. Patel and accordingly enjoyed full trust and faith of Mr. Patel. b. Around the year 2000, Mr. Deepak Chaudhary, in his capacity as managing director of RKDK and a close acquaintance of Mr. Patel approached Mr. Patel with a proposal to transfer the RIL shares held by Hopgage subject to the understanding that the RIL shares shall be held in trust by RKDK for and on behalf of Hopgage Ltd. and be sold at the best ruling market price determin
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Source: SecMarx — sebi:WTM/MPB/MIRSD/13/2017. 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.