sebi:AO/SG-VS/EAD/39/2017

SEBI · SEBI · 2013-06-27 · Suresh Gupta, Adjudicating Officer

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Facts / Headnote

Adjudication proceedings disposed of without penalty as not maintainable against dissolved entity

Provisions invoked

• s. 15A
• s. 15

Regulations

• Reg. 7(1)
• Reg. 7(2)

Parties

• Karville Company Ltd

Holding

The adjudication proceedings initiated against Karville Company Limited vide Show Cause Notice dated November 14, 2013 are disposed of and cannot be proceeded with because the Noticee was already dissolved.

Full text

Adjudication order in respect of Karville Company Ltd (since dissolved) Page 2 of 8 ‘Noticee’/’KCL’) had acquired 17,96,687 shares of SOGL representing 4.49% of total share capital of SOGL on March 29, 2010, due to which its shareholding had increased to 14.81% from 10.32%. Upon crossing 14% threshold limit specified under regulation 7(1) of SAST Regulations, 1997, Noticee had made the required disclosure as per regulation 7(1) read with regulation 7(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as ‘SAST Regulations, 1997’) to SOIL and had also made the disclosure required as per regulation 7(1) read with regulation 7(2) of SAST Regulations, 1997 as against the due date of compliance with a delay of around 1.5 years to stock exchanges. Thus, it was alleged that the Noticee had failed to comply with regulation 7(1) read with regulation 7(2) of SAST Regulations,

Adjudication order in respect of Karville Company Ltd (since dissolved) Page 3 of 8 against it under Rule 4 of the AO Rules read with Section 15-I of SEBI Act and why penalty should not be imposed on the Noticee under Section 15A (b) of SEBI Act for the alleged violations. The said SCN was sent at ‘PO Box 218, 34/45, La Motte Street, St. Helier, Jersey JE4 8SD, Channel Islands’ through registered post. The proof of delivery of SCN dated November 14, 2013 is not on record.

Adjudication order in respect of Karville Company Ltd (since dissolved) Page 4 of 8 8. In the interest of natural justice and in order to conduct an inquiry in terms of rule 4(3) of the Rules, the Noticee was granted an opportunity of hearing on November 19, 2015 by the undersigned, vide notice of hearing dated October 08, 2015 at SEBI, Head Office, Mumbai. The hearing notice dated October 08, 2015 along with a copy of SCN dated November 14, 2013 also reminding the Noticee to reply to the SCN and a copy of notice dated April 11, 2014 was sent to the Noticee at the address mentioned at para 7 above, through courier. The proof of delivery of hearing notice dated October 08, 2015 was not received.

Source: SecMarx — sebi:AO/SG-VS/EAD/39/2017. 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.