sebi:AO/SBM/EAD-3/140-142/2018
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Facts / Headnote
Penalty imposed on Noticee 1 and Noticee 2; proceedings against Noticee 3 disposed of without penalty due to dissolution of the company
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15J
- s. 248
- s. 18(7)
- s. 248(5)
- s. 250
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 6
- Reg. 44
- Reg. 11
- Reg. 8
- Reg. 11(1)
- Reg. 8(2)
- Reg. 7(2)
- Reg. 8(1)
- Reg. 199
- Reg. 35
Parties
- Mr. Sanjay Goel (Noticee 1)
- M/s Vaishali Resources Ltd. (Noticee 2)
- M/s Archana Fibres Pvt. Ltd. (Noticee 3)
Holding
Noticee 1 was held to have violated Regulation 7(1A) read with Regulation 7(2) of SAST Regulations, 1997 for failing to disclose his purchase of 84,100 shares on 09.06.2008, and both Noticee 1 and Noticee 2 were held to have violated Regulation 8(2) for belated annual disclosures. The allegation of violation of Regulation 7(1A) for sale transactions was rejected following SAT's decision in Ravi Mohan v. SEBI, and the allegation of violation of Regulation 8(1) was rejected as neither noticee individually held more than 15% shares.
Full text
Page 2 of 27 equity shares of the face value of Rs 10 each representing 26% of the equity and voting share capital of the Company at a price of Rs 17.50/- per equity share payable in Cash. The Company is listed on the Bombay Stock Exchange (BSE).
Page 3 of 27 Noticees to comply with the aforementioned provisions of the SAST Regulations, 1997. Consequent to the transfer of Shri D Ravikumar, the undersigned was appointed as the Adjudicating Officer, vide an order dated June 22, 2015. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING:
Page 4 of 27 Act for its alleged violation of the relevant provision of SAST Regulations, 1997 as mentioned in the SCN. The SCN issued to the Noticee 2 alleged the following : Noticee 2 has allegedly violated the provisions of Regulation 7(1A) of the SAST Regulations, Regulation 8(1) and Regulation 8(2) of the SAST Regulations, 1997 as under: Regulation 7(1A) S. No. Date of Transaction Shares bought/sold 1. 26.05.2008 Sold-1,14,250 shares amounting to 3.80% 2. 20.08.2008 Sold-1,14,100 shares amounting to 3.79% Regulation 8(1) and 8(2) S. No. Regulation Year Delay 1. 8(1) 2001 9 2. 8(2) 2001 9 3. 8(1) 2002 8 4. 8(2) 2002 8 5. 8(1) 2003 7 6. 8(2) 2003 7 7. 8(1) 2005 6 8. 8(2) 2005 6 9. 8(1) 2006 4 10. 8(2) 2006 4 11. 8(1) 2007 9 12. 8(2) 2007 9 13. 8(1) 2010 8 14. 8(2) 2010 8
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Source: SecMarx — sebi:AO/SBM/EAD-3/140-142/2018. 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.