sebi:AK/AO-59-61/2014
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Facts / Headnote
No penalty imposed; proceedings disposed of; Noticees exonerated from charges
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7(1)
- Reg. 199
Parties
- Mr. Chandra Prakash Kanoi
- Mr. Santosh Kumar Kanoi
- Mr. Nirmal Kumar Kanoi
Holding
The Noticees contravened Regulation 7(1) read with 7(2) of the Takeover Regulations by delayed disclosure to the stock exchange, but the matter was held not fit for imposition of monetary penalty under Section 15A(b) and the proceedings were disposed of with exoneration.
Full text
______________________________________________________________________________________ Adjudication order in the matter of M/s. Ethelbari Tea Company Limited Page 2 of 7
______________________________________________________________________________________ Adjudication order in the matter of M/s. Ethelbari Tea Company Limited Page 3 of 7 Date of acquisition Name of transferee Name of transferor No. of shares Change in % of shareholding acquisition Due date of compliance Actual date of compliance Delay in no. Days 11.01.2010 Mr. Chandra Prakash Kanoi Mr. Radheshyam Kanoi 2,435 5.55% 13.01.2010 12.01.2010* 21.01.2010# 8 days
______________________________________________________________________________________ Adjudication order in the matter of M/s. Ethelbari Tea Company Limited Page 4 of 7 c) That subsequently on January 11, 2010, the Noticees viz. Mr Chandra Prakash Kanoi, Mr Santosh Kumar Kanoi and Mr Nirmal Kumar Kanoi received by way of operation of law, 2,435, 2435 and 2,437 equity shares respectively on transmission from their Late father Mr. Radheshyam Kanoi; d) That they had not purchased the said shares and that it was only an internal transfer by way of operation of law, since their late father expired on December 24, 2009, and, they being the legal nominees, the shares were transferred in their favour; e) That the acquisition was only pursuant to transmission of shares and not voluntary/ deliberate transfer amongst the promoter group; f) That due to confusion regarding disclosure requirement under the Takeover Regulations in case of transmission of shares, there was a minor delay of 8 days in submitting the disclosures to the stock Exchanges; g) That minor delay in filing the compliance did not result in any undue benefit to the Noticees as the shares were received by them only by operation of law, and no loss or damage was caused to the investor community; h) Supporting the above contention, the Noticees have relied upon the following Judgments: i)
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Source: SecMarx — sebi:AK/AO-59-61/2014. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.