sebi:WTM/PS/17/ISD/JUNE/2014
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Facts / Headnote
Representation dated February 12, 2014 disposed of; request to vacate further seven-year restraint rejected
Provisions invoked
- s. 19
- s. 11B
- s. 12A
- s. 28A
- s. 222
Regulations
- Reg. 3
Parties
- Mr. Dushyant Natwarlal Dalal
- Mrs. Puloma Dushyant Dalal
Holding
SEBI rejected the applicants' request to vacate the further seven-year market restraint despite subsequent recovery of the Rs.6 crore disgorgement amount, holding the restraint continues for failure to pay within 45 days of the SEBI Order dated July 21, 2009.
Full text
Page 2 of 16 3. Although, no fault can be found with the decision of SEBI in rejecting the application which was filed beyond the time specified in our order dated January 17, 2014, in our opinion in the interest of justice, it would be just and proper to condone the delay in filing the application.
Page 3 of 16 b) The noticees shall disgorge the unlawful gain of Rs.4.05 crore (rounded off from Rs.4,05,61,579). c) The noticees shall also pay Rs.1.95 crore (rounded off from Rs.1,94,69,558), being the simple interest at the rate of 12% per annum for 4 years (2005-09) on the unlawful gain Rs.4,05,61,579. d) The noticees shall pay the above amount of Rs.6 crore (Rupees six crore) within 45 (forty five) days from the date of this order by way of crossed demand draft drawn in favour of “Securities and Exchange Board of India”, payable at Mumbai. e) In case the aforesaid amount Rs.6 crore is not paid within the specified time, the noticees shall be restrained from buying, selling or dealing in securities market in any manner whatsoever or accessing the securities market, directly or indirectly, for a further period of seven years, without prejudice to SEBI’s right to enforce disgorgement.
Page 4 of 16 5. Thereafter, SEBI, in exercise of the powers conferred under the SEBI Act, as amended vide the Securities Laws (Amendment) Second Ordinance, 2013, initiated proceedings for recovery of the ₹6 crore due to be disgorged by the applicants as directed vide the SEBI Order. A Certificate (no. 1 of 2013) dated September 25, 2013, under section 28A of the SEBI Act read with section 222 of the Income Tax Act, 1961, was drawn by the Recovery Officer, SEBI, directing the applicants to pay the sum of ₹6 crore within 15 days. The applicants were given notice that on their failure to comply with the payment, recovery would be effected in accordance with the provisions of section 28A of the SEBI Act as amended vide the Securities Laws (Amendment) Second Ordinance, 2013 read with sections 222 to 232 of the Income Tax Act, 1961 and the Second Schedule to the said Act and the rules made thereunder. This certificate also informed the applicants that they would also be liable for interest, all costs, charges and expenses incurred in respect of the services of the notice and of warrants and other processes and all other proceedings taken for realizing the said sum. In view of the applicants failure to make the payment, SEBI vide Orders dated October 18, 2013 attached various bank accounts held by the applicants in various banks, either held singly or in joint names, any amounts due to be received by the applicants, lockers registered in their names, singly or in joint names. It was
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Source: SecMarx — sebi:WTM/PS/17/ISD/JUNE/2014. 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.