Case Law Details
In re Dwitiya Trading Limited (SEBI)
The conduct of the Noticee in not paying heed to the summonses issued by SEBI and resultant non-cooperation with the process of investigation cannot be taken lightly. The SEBI Act grants powers of investigation and collection of information/documents for the purposes of investigation. For this purpose, SEBI has been empowered to issue summons to compel production of documents/ information. These powers of issuing summons have been granted to SEBI keeping in mind the statutory mandate of safeguarding the securities market and the interests of the bona fide investors/ participants in the securities market. It is also noted that the Noticee has failed to comply with three summonses that were issued and served upon him. The conduct of the Noticee shows brazen unwillingness on its part to cooperate with the investigation of SEBI, a statutory regulator and such defaults seriously compromise the regulatory framework. A lenient view in such cases would defeat the legislative intent of section 15A(a). Since the default has already occurred, the penalty must follow in this case.
Considering all the facts and circumstances of the case and exercising the powers conferred upon me under section 15I of the SEBI Act read with rule 5 of the Adjudication Rules, I hereby impose the monetary penalty of Rs. 5,00,000/-(Rupees Five Lacs only) on the Noticee, viz. Jahman Dealers Private Limited under section 15A(a), for not complying with the summonses issued on September 27, 2019 and subsequently two reminder summonses which were issued on October 23, 2019 and November 01, 2019, as found hereinabove. In my view, the said penalty is commensurate with the violation committed by the Noticee in this case.
FULL TEXT OF THE ORDER OF SEBI
FACTS OF THE CASE IN BRIEF:
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