Exdon Trading Co. Ltd. & Others vs Securities and Exchange Board of India on 22 December 2010

1) Exdon Trading Co. Ltd. 20, Western India Building, Veer Savarkar Marg, Prabhadevi, Mumbai – 400 020.

2) Ashok Hiralal Shah Exdon Trading Co. Ltd. 20, Western India Building, Veer Savarkar Marg, Prabhadevi, Mumbai – 400 020.

3) Hiralal Popatlal Shah Exdon Trading Co. Ltd. 20, Western India Building, Veer Savarkar Marg, Prabhadevi, Mumbai – 400 020.

……Appellants

Versus

Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400051.

…… Respondent

Ms. Anamika Dubey, Advocate for the Appellants. Mr. Kersi Dastoor, Advocate with Mr. Karan Vyas, Advocate for the Respondent.

CORAM : Justice N. K. Sodhi, Presiding Officer Samar Ray, Member

P. K. Malhotra, Member

Per : Justice N. K. Sodhi, Presiding Officer (Oral)

This appeal is directed against the order dated March 31, 2010 passed by the adjudicating officer imposing a monetary penalty of ` 8 lacs on the appellants for violating Regulations 3 and 4(1) of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003. During the pendency of the appeal the appellants filed an

2 application for a consent order in terms of the circular dated April 20, 2007 issued by the respondent Board proposing to settle the issue without admitting or denying the allegations. As per the revised terms of settlement offered by the appellants, they have undertaken to pay a sum of ` 12 lacs. The High Powered Committee set up for the purpose has accepted the terms as offered by the appellants and the matter was placed before two whole time members of the respondent Board. The respondent Board has also agreed to the terms of consent as proposed by the appellants and by its letter dated December 21, 2010 advised the appellants to deposit a sum of ` 12 lacs in terms of the settlement arrived at. The appellants through their counsel undertake to deposit this amount on or before December 31, 2010.

In view of the undertaking given by the appellants, the appeal is disposed of as per the terms of settlement accepted by the respondent Board with a direction to the appellants to deposit the aforesaid amount before the due date. The impugned order stands modified accordingly. No costs.

Sd/-

Justice N. K. Sodhi

Presiding Officer

Sd/-

Samar Ray

Member

Sd/-

P. K. Malhotra

Member 22.12.2010 ptm

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