sebi:AO/SBM-VB/EAD-3/03/2015
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Facts / Headnote
Penalty imposed of Rs 5,00,000 jointly and severally on the Noticees for violation of Regulation 13(2)(g) read with Regulation 13(1) of the SAST Regulations, 2011.
Provisions invoked
- s. 15
- s. 81
- s. 15H
Regulations
- Reg. 4
- Reg. 13(2)
- Reg. 13
- Reg. 3
- Reg. 15
- Reg. 14
- Reg. 3(1)
- Reg. 13(2)(g)
Parties
- Shri. Mayank Malhotra
- M/s Balmukhi Textiles (P) Ltd
- M/s Brijeshwari Textiles (P) Ltd
- M/s Shiva Spinfab (P) Ltd
Holding
The Noticees were required to make a Public Announcement on March 15, 2012 under Regulation 13(2)(g) read with Regulation 13(1) of the SAST Regulations, 2011 upon preferential allotment of 40,00,000 shares, and their failure to do so constitutes a violation attracting a monetary penalty of Rs 5,00,000 under Section 15H(ii) of the SEBI Act.
Full text
Page 2 of 13 APPOINTMENT OF ADJUDICATING OFFICER 3. SEBI vide Order dated April 26, 2013 appointed Shri D Ravikumar as the Adjudicating Officer under Section 15 I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as „SEBI Act‟) read with Rule 3 of the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as „Adjudication Rules‟) to inquire into and adjudge under the provisions of Section 15H(ii) of the SEBI Act for the alleged violation of the provisions of Regulation 13(2)(g) read with Regulation13 (1) of the SAST Regulations,2011 committed by the Noticees in respect of the open offer. Pursuant to the transfer of Shri D Ravikumar, I have been appointed as the Adjudicating Officer vide an
Page 3 of 13 S.No Name of Allottee No of shares % of post issue paid up capital 1 Shri. Mayank Malhotra 200000 2.32 2 Balmukhi Textiles (P) Ltd 1250000 14.49 3 Brijeshwari Textiles (P) Ltd, 1250000 14.49 4 Shiva Spinfab (P) Ltd 1300000 15.07
Page 4 of 13 c) Doogar & Associates Limited intimated us that their Merchant Banking Registration is under suspension, and were expecting revocation of their suspension anytime soon. d) We were advised that the acquirers will get shares after allotment by Himachal Fibres Limited, and the cause of open offer will arise thereafter. BSE took a little longer time to give 'in principal approval' and the process was delayed. Doogar & Associates Limited was ready with the public offer document to make the requisite compliance. e) After receiving BSE 'in principal approval', we approached Doogar & Associates Limited that now open offer is immediately due. They informed us that their registration is still under suspension and we have to approach some other merchant banker. They mailed their public offer document to Mefcom Capital Markets Limited, and arranged our meeting with them. Doogar & Associates Limited returned our money vide two cheques bearing No. 797731 and 000339 of Rs. 50,000/- each. f) Mefcom Capital Markets Limited re-examined the document from their point of view and sought some additional information. The offer was further delayed even from the angle of actual allotment of shares. g) Mefcom Capital Markets Limited added interest for the delayed period and the offer finally came. h) We want to put it on record that the Noticees were not benefited in any way by the delayed offer, which was delayed despite their best efforts and due to reasons beyond their control. i) We
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Source: SecMarx — sebi:AO/SBM-VB/EAD-3/03/2015. 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.