sebi:WTM/PS/19/IVD/ID-1/JULY/2010
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Facts / Headnote
Show cause notices disposed of without imposing any penalty or direction
Provisions invoked
- s. 19
Regulations
- Reg. 11
- Reg. 3
- Reg. 200
- Reg. 3(a)
Parties
- Mr. Vijay Jhindal
- Neat Developers Ltd.
- Prabhat Fincap Pvt. Ltd.
- Troop Trac Exports Pvt. Ltd.
Holding
SEBI disposed of the show cause notices issued to Vijay Jhindal, Neat Developers Ltd., Prabhat Fincap Pvt. Ltd. and Troop Trac Exports Pvt. Ltd. without imposing any penalty or direction, finding insufficient evidence that the noticees had entered into transactions in violation of Regulations 3, 4, 5 and 6 of the PFUTP Regulations.
Full text
Page 2 of 8 2. Investigation by SEBI were initiated pursuant to the receipt of a letter from the Crime Branch, New Delhi dated April 24, 2003, seeking clarification in a FIR dated December 01, 2001. The basis of FIR was the complaint of Mr. Vivek Gupta S/o Mr. S.K. Gupta, Managing Director, GBL, made to the Hauz Khas, Police Station on November 07, 2001 against Mr. Vijay Jhindal, Mr. J.P. Madaan and others for cheating and misappropriation of amount to the tune of Rs.1 crore. The said complaint states that in order to raise funds, Vivek Gupta approached Vijay Jhindal who was dealing in the sale and purchase of shares. Vivek Gupta thereafter had entered into a Memorandum of Understanding (hereinafter referred to as ‘MoU’) with Vijay Jhindal on July 3, 2001, which was signed by Mr. J.P. Madaan, stated to be an employee of Vijay Jhindal. As per the terms of MoU, Vivek Gupta handed over slips of 20 lakh shares of GBL to Madaan on July 04, 2001 and Vijay Jhindal handed him a cheque dated July 05, 2001 for Rs.5 lakh. Further, as per the assurance, Vijay Jhindal was supposed to give Rs.20 lakh within 10 days of the transfer of the aforesaid shares i.e. on July 14, 2001. When Vivek Gupta approached Vijay Jhindal for the aforesaid payment after a lapse of 10 days of the transfer of shares, he refused to pay him. Vivek Gupta stated in his complaint that the shares were worth Rs.1 crore and Vijay Jhindal was supposed to sell them at Rs.7.15 per share. As per the terms of MoU, the sale p
Page 3 of 8 Services Ltd) transferred shares in the off-market to Troop Trac Exports Pvt. Ltd. (hereinafter referred to as ‘Troop’). Thereafter, Troop in association with Prabhat Fincap Pvt. Ltd. (hereinafter referred to as ‘Prabhat’) and Neat Developers Ltd. (hereinafter referred to as ‘Neat’) was found to have indulged into cross deals and reversal of trades in the market through the broker Integrated Master Securities Pvt. Ltd.
Page 4 of 8 SCN and hearing. SCN of Troop was also issued on the address available on the website of Ministry of Corporate Affairs. Another opportunity of personal hearing was given to the noticees on November 20, 2009, at Delhi. In the mean time Neat vide its letter dated November 19, 2009 replied to the SCN.
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Source: SecMarx — sebi:WTM/PS/19/IVD/ID-1/JULY/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.