Registered Post with A/D
EAD/GBR/85555/2007
February 5, 2007
Smt Radha Dalmia
S/o : K P Dalmia
12, Nawab Habibullah Avenue,
2nd Street, Chennai – 600034.
Sub : Notice under Rule 4 of the SEBI (Procedure for holding inquiry and imposing penalties by Adjudicating Officer) Rules, 1995
The undersigned has been appointed as the Adjudicating Officer, vide SEBI order dated September 26, 2006 to inquire into and adjudge your non-compliance of the summons issued by SEBI in the context of your alleged activities in the scrip of DSQ Software Limited (for brevity’s sake hereinafter referred to as (‘DSQ Software’) resulting in the violation of the provisions of Section 11C (6) of SEBI Act, 1992 read with Section 15A of the SEBI Act, 1992.
You are the wife of Shri Dinesh Dalmia, Managing Director & Promoter of DSQ Software. The price of the scrip of the said company moved from Rs 50/- in the 1st week of March’98 to Rs. 305/- in the end of May’98 which was almost 600%. You were found to have increased your stake in DSQ Software from 6,90,000 shares amounting to 3.41% of the equity capital of DSQ Software as on 26th Sept’97 to 22,75,200 shares amounting to 11.24% of the equity capital of DSQ Software as on 22nd July ’98 i.e. you increased your shareholding in the said company by 15,85,000 shares.
On account of complaints as regards the unprecedented price rise in the said scrip, SEBI initiated an investigation into the said matter for the period from Jan’98 to Dec’98.
In order to arrive at a suitable finding during the process of investigation, clarifications were required from you as regards your dealings in the shares of DSQ Software and in this context, SEBI issued summons to you under Section 11(3) of the SEBI Act, 1992 seeking your personal appearance and also production of the required documents as stated in the annexure to the summons. The brief details of the said summons are as under:
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Sl. No.
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Date of Summons
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Date to appear/reply
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1.
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12-Dec-2003
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22–Dec-2003
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2.
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08-Jan-2004
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19-Jan-2004
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3.
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04-Feb-2004
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16-Feb-2004
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4.
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07-Apr-2004
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22-Apr-2004
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5.
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14-Oct-2004
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25-Oct-2004
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Copies of the summons are attached herewith.
It appears that you have failed to appear in person and also to produce the aforesaid documents/information called for by SEBI despite several summons issued to you and the receipt of the same by you. Your inaction in this regard makes you liable for penalty as prescribed under Section 15A of the SEBI Act, 1992.
In view of the above, you are advised to show cause as to why an inquiry should not be held against you in terms of Rule 4 of the SEBI (Procedure for holding inquiry and imposing penalties by Adjudicating Officer) Rules, 1995 and why penalty should not be imposed on you under Section 15A of SEBI Act, 1992.
Your reply, if any, should reach the undersigned, at the address mentioned below within 14 days from the date of receipt of this notice along with the copies of the documents, if any, that you may wish to rely upon in support of your contentions. You may also indicate therein whether you desire a personal hearing, failing which it shall be presumed that you have no submissions to make, in which case, the matter shall be proceeded on the basis of the material available on record.
Securities and Exchange Board of India
First Floor, B Wing
SEBI Bhavan
Plot No. C-4A, G Block
Bandra Kurla Complex
Bandra (E)
Mumbai- 400 051
G. Babita Rayudu.
Adjudicating Officer.
Encl as above