sebi:AO/SBM/EAD-3/164-167/2018
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Facts / Headnote
Noticees exonerated; Show Cause Notice dated August 30, 2013 disposed of without penalty
Provisions invoked
- s. 15
- s. 15H
- s. 106
- s. 47
Regulations
- Reg. 11
- Reg. 199
- Reg. 14
- Reg. 14(1)
- Reg. 10
- Reg. 11(1)
- Reg. 2(b)
- Reg. 201
Parties
- Shri Anil Monga
- Shri Rajesh Monga
- Ms. Renu Monga
- Shri B. B. Gandhi
Holding
The Adjudicating Officer exonerated the Noticees, holding that the increase in their percentage shareholding of Emmsons International Ltd. (EIL) resulting from the forfeiture of 7,89,100 shares by the company on August 23, 2005 was a passive acquisition that does not attract Regulation 11(1) read with Regulation 14(1) of the SAST Regulations, 1997.
Full text
Page 2 of 13 that the Noticees have allegedly violated the provisions of Regulation 11(1) r/w Regulation 14(1) of SAST Regulations, 1997 on August 23, 2005.
Page 3 of 13 the total share capital of EIL during the financial year ended March 31, 2006 was Rs. 4.36 crore (represented by 43,58,920 equity shares of face value of Rs. 10/- each).
Page 4 of 13 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING: 8. Show Cause Notice reference no. A&E/EAD-3/DRK-DS/22165/2013 dated August 30, 2013 (hereinafter referred to as ‘SCN’) which was issued to the Noticees in the matter, inter alia, mentioned the following:- a) While examining the offer document of EIL, SEBI observed that pursuant to the forfeiture of 7,89,100 equity shares of the company, your shareholding along with other promoters namely Shri Sanjeev Monga, Shri Madan Lai Monga, Shri Anil Aggarwal and Emmpac Holdings Pvt. Ltd., increased by 7.66% on August 05, 2005. However, you did not make public announcement with respect to the said acquisition as required under Regulation 11(1) read with Regulation 14(1) of the SAST Regulations, 1997. b) In view of the above facts, it is alleged that your actions have led to the violation of Regulation 11(1) read with Regulation 14(1) of the SAST Regulations, 1997. c) The alleged violation of Regulation 11(1) read with Regulation 14(1) of the SAST Regulations, 1997, if proved, makes you liable for penalty under Section 15H(ii) of the SEBI Act.
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Source: SecMarx — sebi:AO/SBM/EAD-3/164-167/2018. 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.