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The securities appellate tribunal recorded the differences between original noticee and appellate noticee – THE SECURITIES AND EXCHANGE BOARD OF INDIA

The securities appellate tribunal recorded the differences between original noticee and appellate noticee – THE SECURITIES AND EXCHANGE BOARD OF INDIA

An adjudication order was passed against Rajesh Agarwal (original noticee) levying a penalty of Rs. 5,00,000/-  under Section 15HA of the SEBI Act, 1992, for violation of Section 12A (a), (b) and (c) and of Regulations 3 (a), (b), (c) and (d), as well as 4 (1), (2) (a), (e) and (g) of the SEBI regulation,2003 but the Hon’ble Securities Appellate Tribunal remitted the order for fresh consideration because the Rajesh Agarwal(appellate noticee) has submitted some different identification then the original noticee hence the difference has to be considered between the original and appellate noticee .the matter was adjudicated by MANINDER CHEEMA ADJUDICATING OFFICER in the [ADJUDICATION ORDER NO. Order/MC/VS/2021-22/14853]

The show cause notice was sent to original noticee and to appellate noticee on the addresses provided and some enquires were conducted to know the difference and it is noted that since documents submitted to the SAT by SEBI as well as the Appellant Noticee, the Hon’ble SAT remitted the matter to the undersigned for fresh consideration after considering the Noticee response.

The issues arising before the officer is whether the Appellant Noticee is a person different from the original Noticee to which the SCN was issued and against whom the order was passed. appellate proceedings were conducted, and it occurred that certain documents were sought from Beeline Broking Ltd., the broker of the original Noticee who executed the impugned trades. These documents have been produced by the Appellant Noticee before the officer as part of papers provided to SAT. some other documents were presented and it was evident that there are irregularities in the account opening forms of RK Stockholding and Beeline brokers.

From the submissions made by the appellate noticee it was evident that  a computer resource has been used to impersonate the Noticee and use his PAN and other details to open and operate fraudulent demat and trading accounts with Beeline Broking and RK Stockholding .from the above submission the doubt is clear that  the Appellant Noticee who appeared for the hearing during adjudication proceedings leading to passing of adjudication order dated 27.08.2020 and appealed against it before the Hon’ble SAT is not the same person as the original Noticee who carried out the impugned trades.

It is clarified that the appellate noticee is a different person from the original noticee and did not carry out the impugned trades and hence there is no violation alleged against him and the said order is not applicable to the appellate noticee.

Taking into consideration the above submission the order dated 27.08.2020 levying a penalty of Rs. 5,00,000/- on the original Noticee i.e., Rajesh Agarwal continues to be applicable and not applicable to the appellant noticee.

Click here to read the Order

Order reviewed by Naveen Sharma

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