Sebi issues notices to 33 entities for alleged irregularities

Capital market regulator Sebi has ordered 33 entities to appear before it with regard


to probes into various irregularities, after they were found untraceable and show-cause notices issued to them returned undelivered.

These entities, which include individuals and companies as well, have been directed through public notices to appear before Sebi's adjudicating officers and they are alleged to be involved in cases such as circular trading and manipulation in shares of various companies.

The Securities and Exchange Board of India (Sebi) said the show-cause notices issued to them could not be served at their respective known addresses pursuant to which the market watchdog has issued these public notices.

If these entities fail to appear on the prescribed dates, the adjudication officers would proceed with their inquiry in their absence. They are being investigated for matters related to Brooks Laboratories, Sky Industries, Sanwaria Agro Oils, White Diamond Industries, GSS Infotech, synchronised trades by connected persons and circular trading in five stocks.

The market regulator has also asked these entities to collect their 'notice of inquiry' from the office of the adjudication officer "by hand or through their authorised representative on production of proper authorisation letter".

"In case the noticees or their authorised representatives fail to appear for the hearing on the scheduled date, the adjudicating officers will conduct the proceedings ex-parte in terms of the...(Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules," the regulator said.

A majority (23) of these are sought for an inquiry by Sebi in the matter of Brooks Laboratories. These include Konark Commercial & Industries, Shardaraj Tradefin, Blue Print Securities which have to appear for a hearing on December 23.

Besides, three entities -- Chetan Dogra, Chetan Dogra HUF (Hindu Undivided Family) and Manojbhai Rameshchandra Shah -- have been asked to appear before Sebi on December 20 in the matter of Sky Industries.

In addition, the notice has been served against one individual each in the matter of White Diamond Industries, GSS Infotech and synchronised trades by connected persons.

Moreover, three individuals -- Nita Bhavsar, Sahaishil T Jhaveri and Jagdish Bhagat -- have been issued show-cause notices in the matter of circular trading in five scrips, Sebi said. These three have been asked to reply to the notice within 14 days.

Sebi has been armed with more powers with the Securities Laws (Amendment) Ordinance, 2013, that allows it to freeze bank accounts, attach properties, conduct search and seizure and initiate recovery proceedings.

Latest data by Sebi showed that nearly 1,400 entities have defaulted on penalties totalling about Rs 130 crore imposed by the regulator Sebi for various offences related to securities market, while some of these cases are more than a decade old.

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