sebi:AO/SBM/EAD-3/78/2017
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 13
- Reg. 13(1)
- Reg. 13(3)
- Reg. 29(1)
- Reg. 7(1)
- Reg. 13(4)
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29(3)
- Reg. 12
- Reg. 29
Parties
- Shri Parind S Parekh
Holding
The Noticee was held to have violated Regulation 29(1) and 29(2) read with 29(3) of the SAST Regulations and Regulation 13(1), 13(2A), 13(3), 13(4) and 13(4A) read with 13(5) of the PIT Regulations by failing to make timely disclosures of his shareholding changes in NITSL, and a consolidated penalty of Rs 3,00,000 was imposed under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 15 provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as 'SAST Regulations') and also under the provisions of SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as 'PIT Regulations'). In view of the above, adjudication proceedings were initiated against the Noticee under the provisions of section 15 A (b) of the SEBI Act, 1992 ( hereinafter referred to as SEBI Act).
Page 3 of 15 alleged contravention of the provisions of law by the Noticee. The SCN issued to the Noticee inter alia mentioned the following : a) SEBI conducted an investigation into the alleged irregularity in the trading in the scrip of Nivyah Infrastructure & Telecom Services Ltd.( Nivyah) to examine the possible violation of the provisions of the SEBI Act and various rules and regulations made there under. The shares of Nivyah were listed at Bombay Stock Exchange Ltd. and Madhya Pradesh Stock Exchange Ltd. b) The details of the transactions of the Noticee in the scrip of Nivyah are given as follows: Date of transaction Acqi/ sale No. of shares Change in shareholding Resulta nt Change in % Net change in shareholdin g Change in value (Rs.) 20.06.2012 A 2,61,77,777
Page 4 of 15 c) It is alleged from the above table that on June 20, 2012, Notioee had acquired 2,61,77,777shares of Nivyah which constitutes 35.13% of the total shareholding of Nivyah. At this juncture, as per regulation 29(1) read with 29(3) of SAST Regulations, as Noticee had acquired more than five percent of the shares of the target company, he was required to disclose such acquisition to the stock exchanges and to Nivyah within two working days of such acquisition of shares.
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Source: SecMarx — sebi:AO/SBM/EAD-3/78/2017. 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.