sebi:WTM/SR/SEBI/EFD-DRA-3/55/08/2017
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Facts / Headnote
Show Cause Notice dated January 05, 2017 disposed of; no further period of restraint or prohibition imposed
Provisions invoked
- s. 11B
Parties
- Mr. Hemant Jhala
Holding
The Noticee, as Chairman of ASEL-ISC Committee and trustee of AGIPT, violated Clauses 3.6.1(a) and 3.8.8 of the SEBI Circular regarding Code of Conduct and Code of Ethics by failing to avoid conflict of interest when approving financial assistance to AGIPT. However, no further restraint was imposed as the period of restraint already undergone (from April 24, 2014) was found commensurate with the violation.
Full text
Page 2 of 12 In addition to the amount (Rs.6,00,000/-) claimed from ASEL for conducting various investor awareness programmes, Mr. Hemant Jhala also claimed – further financial assistance from BSE-IPF (Rs.1,80,000/-) for conducting same seminars.
Page 3 of 12 v. It was known to ASEL M.D. that AGIPT is conducting seminars with BSE too, but he never pointed out the issue in conducting Seminars with BSE, neither BSE officials pointed out, despite knowing that AGIPT is conducting joint seminars for both the exchanges and officials of both exchanges were attending the seminars as a speaker too. vi. Further, it may be noted that AGIPT was always working for the benefit and in the interest of the investors under SEBI’s guidelines and fighting against wrong doers of capital market, like Dubba trading and other allied activities in the capital market. So, the some wrong doers created the whole issue against AGIPT. AGIPT is now closed. All trustees and committee members in AGIPT have tendered their resignations and the Secretary Mr. Rakesh Patel, who was looking after the matter also died. vii. ASEL granted Rs.7.50 Lacs financial assistance to AGIPT after approving the same in the Investors Service committee and Board meeting too, wherein then M.D and PID were also present and they never objected for the same. Photographs etc. of all the seminars and programme have been sent to SEBI from time to time by AGIPT , ASEL and BSE too, in their QDR and no any objection had been raised by SEBI, at any point of time. viii. As regards AGIPT’s proposal to arrange 12 investors Seminars upto 31st March 2011, jointly with the ASEL’s Investor Service Cell with an estimated budget of Rs.80000/- (with 20% variation on both side) per seminar was
Page 4 of 12 xii. Securities and Exchange Board of India always offers Transport and Dearness Allowances (T&DA) when the Investor Awareness Programme is to be conducted. We have never accepted T&DA offered by SEBI for the IAPs. xiii. In respect of the grant taken for activities carried out, we would like to state that we have conducted the said Investor Awareness Programmes even though we were not receiving grants from ASEL and BSE. Further, the proposal has been made for such type of Investors Awareness Programmes, which always aims to educate more and more public with the benefit of investment in Capital Market. xiv. Even though the trust has accepted grant from both ASEL and BSE for the same seminar, even entrusted advertising for ASEL or BSE. xv. Further, no trustees have ever reimbursed the travelling expenses incurred by them for conducting Investor Awareness Programmes. The trustees have never intended to misuse the funds even for the actual expenses incurred by them, in the said matter. xvi. Looking to the track record of the trust, it has never received any complaint from the investors in respect of the awareness programmes conducted.”
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Source: SecMarx — sebi:WTM/SR/SEBI/EFD-DRA-3/55/08/2017. 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.