Appeal No.16 of 2013 with Appeal No.17 of 2013 and Appeal No.18 of 2013. Case: 1. Sunday Exports Ltd., 2. Shri Pravinchandra Dashrathbhai Patel, 3. Shri Rameshchandra Ishwarlal Gandhi, 4. Smt. Gitaben Rameshchandra Gandhi, 5. Shri Devang Rameshchandra Gandhi, 6. Smt. Devanshi Devang Gandhi Vs Adjudicating Officer Securities and Exchange Board of India. Securities and Exchange Board of India

Case NumberAppeal No.16 of 2013 with Appeal No.17 of 2013 and Appeal No.18 of 2013
CounselFor Appellant: Mr. M.P. Rao, Senior Advocate and For Respondents: Mr. Prateek Seksaria, Advocate with Mr. Mihir Mody, Mr. Harish Bora and Mr. Akhilesh Singh, Advocates
JudgesJog Singh, Member
IssueSecurities and Exchange Board of India Act, 1992 - Sections 15HB, 15-I(2); Securities and Exchange Board of India - Rules 3, 5; Securities Contracts (Regulation) Act, 1956 - Section 23A(a); Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 - Section 12(1)
Judgement DateMarch 20, 2013
CourtSecurities and Exchange Board of India

Judgment:

Jog Singh, Member

  1. On the last date of hearing i.e 8th March, 2013 Shri Rao, learned senior counsel for the appellants sought some time to seek instructions from his clients as to the quantum of penalty. Today, Shri Rao appears and fairly submits that his clients are prepared to pay a consolidated amount of Rs. 5,00,000/- in all three appeals. This aspect will be looked into at the time of passing of final order in the three appeals after hearing learned counsel for the parties.

  2. With the consent of the parties all the three appeals have been heard together as they involve common questions of law and fact. Appeal no.16 of 2013 has been filed by Sunday Exports Limited, a company listed on the Bombay Stock Exchange Ltd. (BSE) against order dated November 01, 2012 imposing a penalty of Rs. 2,00,000/- by the learned Adjudicating Officer of the respondent Board under section 15-I(2) of the Securities and Exchange Board of India Act, 1992 (the Act) read with Rule 5 of the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 2005. In fact a penalty of `1,00,000/ has been imposed under section 15HB of the Securities and Exchange Board of India Act, 1992 and another sum of Rs. 1,00,000/- has also been imposed under section 23A(a) of the Securities Contracts (Regulation) Act, 1956 (for short SCRA).

  3. Similarly, Appeal no.17 of 2013 has been preferred by Mr. Pravinchandra Dashrathbhai Patel and Mr. Fulian Ashvin Reshamwala who are the two Whole Time Directors of the company against the impugned order dated November 01, 2012 passed by the learned Adjudicating Officer imposing a penalty of Rs. 1,00,000/- on each of them under section 15HB of the Act.

  4. Turning to Appeal no.18 of 2013, it is also noted that it also arises out of the same set of investigation and facts. However, in this appeal the appellants are Shri Rameshchandra Ishwarlal Gandhi, Chairman and Managing Director (Appellant no.1) and his wife Smt. Gitaben R. Gandhi (Appellant no.2). Both of them are the promoters of the company. Shri Devang Rameshchandra Gandhi, Director and Compliance Officer is Appellant no.3 and Smt. Devanshi Devang Gandhi, Director is Appellant no. 4. Both of them happen to be the son and daughter-in-law of Shri Rameshchandra Gandhi, respectively. M/s Riddhi Silk Mills is a partnership firm owned by Shri and Smt. Devang Gandhi and it is Appellant No. 5.

  5. The Tribunal has heard...

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