sebi:AO/SBM/EAD-1/346-347/2018
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty imposed on both Noticees for failure to make disclosures under PIT Regulations and SAST Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 81
- s. 15J
- s. 111(3)
Regulations
- Reg. 13
- Reg. 29
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29(3)
Parties
- Mr. Ankush Ashok Gupta (Noticee 1)
- Mr. Akshat Ashok Gupta (Noticee 2)
Holding
The Noticees violated Regulation 13(4A) read with 13(5) of PIT Regulations and Regulation 29(2) read with 29(3) of SAST Regulations by failing to make timely disclosures of their shareholding changes in SVCRL. A penalty of Rs. 2,00,000 was imposed on Noticee 1 and Rs. 1,00,000 on Noticee 2 under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 21 (‘CLB’) was also confirmed by the Hon’ble Bombay High Court vide Order dated August 26, 2013. Thereafter, Company Law Board also approved change in the Board of Directors of the Company, vide its order dated April 04, 2014 and, thereby, appointed Mr. Mohd. Ali as the Managing Director and Compliance Officer of the Company. Subsequently, Company Law Board, vide its Order dated June 04, 2015, concluded that the allotment of 4,05,44,426 shares was illegal and the same was made without following the due process mentioned under the Companies Act, 1956 and ordered cancelation of the said shares. CLB also ordered rectification of the register of members of the company accordingly under the provisions of the Companies Act, 1956.
Page 3 of 21 1992 (hereinafter referred to as 'PIT Regulations'). Therefore, it was alleged that Noticees have violated the provisions of SAST Regulations and PIT Regulations. In view of the above, adjudication proceedings were initiated against the Noticees under the provisions of section 15A(b) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’).
Page 4 of 21 2013. Therefore, the total paid up capital of the company, during examination period, was Rs. 6,95,33,333 (represented by 6,95,33,333 shares of face value of Rs. 1/- each). b) It is observed from the shareholding pattern of the Company for the quarter ended December 2013 and March 2014, as available on BSE website, that Noticee 1 and Noticee 2 were part of the Promoter Group of SVCRL during the Examination Period. c) Upon examination of transaction statement and the trading data of Noticee 1, it is observed that Noticee 1 was continuously selling the shares of the Company during the examination period. The following transactions were done by the Noticee 1 during the examination period- Table 1- transactions of Noticee 1 in shares of the Company Date of the Transaction Shares Transacted % of shares sold in the transaction Cumulative sale off Holding after sale Holding in December 2013
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:AO/SBM/EAD-1/346-347/2018. 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.