sebi:ASK/AO/4/2015-16
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Facts / Headnote
Penalty imposed on the Noticee for violations of SAST Regulations, 1997, PIT Regulations, 1992, and sections 11C(3) and 11C(5) of the SEBI Act, 1992.
Provisions invoked
- s. 15A
- s. 15
- s. 15I
- s. 15J
- s. 15H
- s. 11C(3)
- s. 11C
- s. 11C(5)
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 11
- Reg. 13(1)
- Reg. 11(1)
- Reg. 7(2)
- Reg. 35
Parties
- Nazima Impex Pvt. Ltd.
Holding
The Noticee violated regulation 7(1) read with regulation 7(2) of SAST Regulations, 1997, regulation 13(1) of PIT Regulations, 1992, and sections 11C(3) and 11C(5) of the SEBI Act, 1992, and is liable for a total monetary penalty of Rs. 9,00,000/-. The Noticee did not violate regulation 7(1A) of SAST Regulations, 1997.
Full text
Adjudication Order against Nazima Impex Pvt. Ltd. in the matter of Mahan Industries Ltd. Page 2 of 16 allotment of 24,85,00,000 shares of ` 1/- each to the preferential allottees of the convertible equity warrants. Therefore, on February 20, 2010 MIL had issued capital of 32,00,00,000 shares of ` 1/- each and outstanding convertible preferential warrants worth ` 5,15,00,000/-
Adjudication Order against Nazima Impex Pvt. Ltd. in the matter of Mahan Industries Ltd. Page 3 of 16 held 5% or more shares of MIL, they were under obligation to make disclosure about their shareholding or voting rights in the MIL to MIL in Form A within 2 days of transaction as stipulated by Regulation 13(1) of SEBI (Prohibition of Insider Trading) Regulations, 1992 (PIT Regulations, 1992). However, it was observed that the Noticee did not make the requisite disclosure as stipulated by the afore-mentioned regulation. Therefore, it was alleged that the Noticee violated the provisions of regulation 13(1) of PIT Regulations, 1992.
Adjudication Order against Nazima Impex Pvt. Ltd. in the matter of Mahan Industries Ltd. Page 4 of 16 Acquisition of Shares and Takeovers) Regulations, 2011 (SAST Regulations, 2011), Regulation 13(1) of PIT Regulations, 1992 and section 11C(3) and 11C(5) of the SEBI Act, 1992, by the noticee. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
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Source: SecMarx — sebi:ASK/AO/4/2015-16. 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.