sebi:WTM/SR/SEBI/EFD-DRA1/20/03/2017
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Facts / Headnote
Amadhi Investments Limited restrained from buying, selling, dealing in or accessing securities market for 10 years and directed to disgorge Rs.77,77,296 with 10% simple interest p.a. from September 2005 within 45 days, failing which further 5-year restraint without prejudice to recovery.
Provisions invoked
- s. 19
- s. 12A
Regulations
- Reg. 3
- Reg. 4(1)
Parties
- Amadhi Investments Limited
Holding
Amadhi Investments Limited violated Section 12A(a), (b) and (c) of the SEBI Act and Regulations 3 and 4(1) of the PFUTP Regulations by financing SEIPL to corner shares reserved for Retail Individual Investors in the IDFC, FCS and Sasken IPOs. It was restrained from the securities market for 10 years and directed to disgorge unlawful profit of Rs.77,77,296 with 10% simple interest from September 2005.
Full text
Page 2 of 12 4. On completion of investigations, SEBI issued a Show Cause Notice dated December 16, 2008 (SCN) under Sections 11, 11(4) and 11B of the SEBI Act, 1992 to Amadhi calling upon them to show cause as to why suitable directions, including directions restraining it from buying, selling or dealing in securities in any manner for a suitable period and to disgorge Rs.83,84,796/- with interest should not be issued against it for the alleged violations of Section 12A (a) (b) and (c) of the SEBI Act, 1992 and regulations 3 (a), (b) (c) and 4 (1) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Markets)Regulations, 2003 (PFUTP Regulations).
Page 3 of 12 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.
Page 4 of 12 the noticee can be seen as aimed at delaying the proceedings. In view of the above, it can be noted that the Principles of Natural Justice have been complied with and therefore I am compelled to pass this order based on the materials available on record.” The AO vide Order dated April 28, 2014 imposed penalty of Rs. 2.50 crores on Amadhi for the violations of provisions of PFUTP Regulations. I note that Amadhi has not paid the adjudication penalty till date and SEBI has initiated recovery proceedings against Amadhi in this matter.
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Source: SecMarx — sebi:WTM/SR/SEBI/EFD-DRA1/20/03/2017. 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.