sebi:WTM/SR/EFD/153/08/2015
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Facts / Headnote
Violation found; Noticee restrained from buying, selling or dealing in securities market for 3 years and directed to disgorge Rs 98,11,465.32 within 45 days.
Provisions invoked
- s. 11
- s. 11(4)
- s. 19
- s. 12A
- s. 15(1)
Regulations
- Reg. 12(1)
- Reg. 3(i)
- Reg. 2
- Reg. 2(c)
- Reg. 2(e)
- Reg. 11
- Reg. 12
- Reg. 12(2)
- Reg. 2(e)(i)
- Reg. 12A
Parties
- Mr. Aashish Jhunjhunwala
Holding
Mr. Aashish Jhunjhunwala, Chairman and Managing Director of Ramsarup Industries Ltd., being an insider in possession of UPSI in the form of unaudited financial results for quarter ended June 2010, traded during the trading window closure period in violation of Section 12A(d) & (e) of the SEBI Act read with Regulation 3(i) of the SEBI PIT Regulations, 1992. He was directed to restrain from securities market for 3 years and to disgorge loss avoided amounting to Rs 98,11,465.32 within 45 days.
Full text
Page 2 of 23 `61.50 by August 31, 2010. The decrease in the share price was clearly a consequence of the announcement of the financial results for the quarter ended June 2010.
Page 3 of 23 consideration, included Mr. Aashish Jhunjhunwala, who was also the Chairman and Managing Director (CMD) of the company during the relevant period. It was also stated by the company that the Notice with the agenda of the Board Meeting to be held on August 13, 2010 was sent to Mr. Jhunjhunwala on August 05, 2010.The "Notice of the closure of trading window" vide letter dated August 6, 2010 was also issued to all directors including Mr. Jhunjhunwala, officers and designated employees of the company. It is therefore a fact that Mr. Jhunjhunwala, the Chairman and Managing Director of the company was a connected person and was in possession of the UPSI in the form of unaudited financial results of the company for the quarter ended June 2010 and hence an insider in terms of Regulation 2(e) of the SEBI PIT Regulations.
Page 4 of 23 Show Cause Notice, Reply and Personal Hearing 4. A show cause Notice (SCN) dated February 28, 2013 was issued to Mr. Aashish Jhunjhunwala (hereinafter referred to as the "Noticee") under Section 11 & 11B of the SEBI Act to show cause as to why directions under Section 11, 11(4) and 11B of the SEBI Act read with Regulation 11 of the SEBI PIT Regulations, 1992 should not be issued against him for the alleged violations of Section 12A (d) & (e) of the SEBI Act read with Regulation 3(i) of the SEBI PIT Regulations, 1992.
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Source: SecMarx — sebi:WTM/SR/EFD/153/08/2015. 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.