A particular court docket right here has rejected former inventory market dealer Ketan Parekh’s plea for the closure of a case initiated towards by SEBI for not paying a penalty imposed by the markets regulator, noting the accused prima facie violated the norms “deliberately”.
The particular decide for instances beneath the Securities and Trade Board of India (SEBI) Act, RM Jadhav, in an order handed on October 4, dominated that Parekh’s plea for compounding of the case towards him “is unwarranted and uncalled for”.
SEBI initiated a legal case towards Parekh after he did not pay the penalty for violating the board’s regulation. In response, Parekh filed an software earlier than the court docket for closure of the case by compounding.
Parekh, in his plea, said that the grievance had been filed in 2003 for the alleged violation dated 1997.
Nearly 25 years lapsed for the reason that alleged violation. They supplied to pay no matter quantity sought by the board, Parekh’s lawyer submitted earlier than the court docket.
“The applicant wishes to compound offence and is keen to pay the subject material of the current grievance by satisfying the norms and elements said by the SEBI,” Parekh submitted by his lawyer.
Parekh contended that on earlier events too instances towards him had been closed after cost of the advantageous. Till now he has paid a advantageous of Rs 3.37 crore.
Nevertheless, SEBI argued that Parekh, by his associates and funding firms, positioned orders in massive portions exceeding the prevailing market value and in addition cornered a big pool of shares by the off market offers.
Additional, the shares had been offered in massive volumes at a manipulated excessive value of scrips, inflicting the inventory market to crash, the board submitted.
Contemplating the gravity of the offence, the accused had been debarred from getting into the inventory market. Nevertheless, they dealt within the inventory marketplace for which the adjudication order imposing penalty was handed, based on SEBI.
The court docket famous, “prima facie the acts of the accused in violating the rule of regulation of SEBI are intentional”.
Additional, there’s a violation of the SEBI guidelines and rules by the accused even after the debarment for 14 years, the court docket said.
“The accused is alleged to have travelled overseas with out looking for permission of the court docket. The presence of accused Ketan Parekh is secured on proclamation. So, the conduct of the accused in not following the orders can also be required to be famous,” the court docket noticed.
Contemplating the details and circumstances, the decide famous that the SEBI was justified in opposing Parekh’s plea.
“Quite the opposite having due regard to the character of allegations, and conduct of the accused, I discovered that the compounding of the offence is unwarranted and uncalled for,” the court docket noticed and rejected the plea.
