sebi:ASK/AO/5/2015-16
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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
- Jayalalita Commodities Pvt. Ltd.
Holding
The noticee violated regulation 7(1) read with regulation 7(2) of SAST Regulations, 1997 and regulation 13(1) of PIT Regulations, 1992 by failing to disclose acquisition of 5.39% of MIL's shares, and violated sections 11C(3) and 11C(5) of the SEBI Act by failing to comply with summonses. The noticee was held liable for a total monetary penalty of Rs. 9,00,000/- under sections 15A(a) and 15A(b) of the SEBI Act.
Full text
Adjudication Order against Jayalalita Commodities 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 Jayalalita Commodities Pvt. Ltd.in the matter of Mahan Industries Ltd. Page 3 of 16 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 Jayalalita Commodities Pvt. Ltd.in the matter of Mahan Industries Ltd. Page 4 of 16 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/5/2015-16. 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.