9911796707
TMI Blog2013 (12) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Securities and Exchange Board of India Act, 1992 ("SEBI Act"). 2. The Appellant is a company incorporated under the provisions of Companies Act, 1956 having its registered office at Kolkata. The main business of the Appellant is dealing in shares and securities etc. in the market. In June 2011, Sagar Fintrade Private Limited "SFPL", a non-banking finance company registered with Reserve Bank of India, was merged and amalgamated with the Appellant pursuant to Scheme of Amalgamation sanctioned by the Hon'ble High Courts at Calcutta and Cuttack (Orissa) by orders passed on March 16, 2011 and June 24, 2011 respectively. Pursuant to the aforesaid orders, appropriate orders have also been passed for dissolution without winding up of "SFPL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rivate Limited (Simple) x. Taitan Management Services Private Limited (Taitan) ITD also forwarded certain documents which indicated an agreement for manipulation of "MIL" share price and profit sharing between "MIL" promoters and Sanjay Dangi. ITD suggested that the price of the "MIL" scrip was manipulated by the entities mentioned in the reference for the purpose of issuing Foreign Currency Convertible Bond ("FCCB") at a higher price than what was the correct price. SEBI initiated a preliminary inquiry in the matter to find as to whether there was any concentration of shareholding of the company among the ten entities and whether there was any attempt to manipulate the share prices of the company before the FCCB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments to "MIL" for conversion of the share warrants allotted to them. From the information furnished by the dummy companies, "MIL", bank transaction counterparties of dummy companies, etc. it was observed that many customers of "MIL" had given huge unsecured loans to the dummy companies immediately after their incorporation and even before these companies had set up any business infrastructure. In order to conduct a thorough investigation and in order to ascertain the exact role played by the various entities including the ten dummy companies and their shareholders, vide summons, detailed information was sought from "SFPL" by the investigating authority. Despite duly receiving summons "SFPL" failed to submit complete detailed information as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the SCN. 7. It is also the case of the appellant that he has been responding to the summons from time to time and at least on five occasions he has responded to the summons issued by the learned Investigating Officer. In this connection, learned counsel for the appellant Shri Vinay Chauhan has drawn our attention to page 38 of the paper book which forms an integral part of the impugned order. Five instances have been shown where the appellant has responded to the Investigating Officer's summons. 8. On the other hand, learned counsel for the Respondent Mr. Prateek Seksaria submits that the compliance with the summons by the Appellant was half-heartedly and that there was no co-operation from the appellant's side. The learned counsel fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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