sebi:ASK/AO-28-35/2014
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Facts / Headnote
Violation established; penalty of Rs. 6,00,000 imposed on seven Noticees jointly and severally; proceedings against Late Ms. Shanta Devi abated
Provisions invoked
- s. 15A
- s. 15
- s. 15I
- s. 15J
Regulations
- Reg. 7
- Reg. 11
- Reg. 199
- Reg. 11(1)
- Reg. 2(b)
- Reg. 7(2)
- Reg. 35
Parties
- Mr. Shrigopal Dhoot
- Ms. Pratibha Dhoot
- Ms. Gopali Chandra Mohan
- Vishwa Mohan (HUF)
- Ms. Shanta Devi
- M/s Golkunda Commercial Private Limited
- Mr. Ravi Mohan
- Ms. Indumati R Maheshwari
Holding
The Noticees violated Regulation 7(1A) read with Regulation 7(2) of SAST Regulations, 1997 by failing to disclose sale of 2.13% of HSL's share capital within two days of transaction, and are liable to a penalty of Rs. 6,00,000 under Section 15A(b) of the SEBI Act, jointly and severally. Proceedings against the deceased Noticee Ms. Shanta Devi were abated.
Full text
Adjudication Order in the matter of Hind Syntex Limited Page 2 of 16 33,06,836 equity shares of the face value of ` 10 each, representing 26% of the total equity share capital of HSL at a price of ` 8/- per fully paid up equity share payable in cash. Shares of HSL are listed at Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
Adjudication Order in the matter of Hind Syntex Limited Page 3 of 16 Officer) Rules, 1995 (hereinafter referred to as the ‘Rules’) to inquire into and adjudge under section 15A(b) of the SEBI Act for the alleged violations of provisions of Regulation 7(1A) read with regulation 7(2) of SAST Regulations, 1997 read with Regulation 35 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as “SAST Regulations, 2011”) by the Noticees. Subsequently, upon the transfer of Shri Piyoosh Gupta, I have been appointed as Adjudicating Officer, in the present matter, vide order dated November 08, 2013.
Adjudication Order in the matter of Hind Syntex Limited Page 4 of 16 Ravi Mohan, one of the Noticees, appeared for himself and as Authorized Representative (AR) on behalf of other Noticees accompanied by Mr. Sanjay Ashar, Ms. Paulomi Mehta and Shri S.L. Moondhra. Noticees reiterated the written submissions made vide letter dated December 16, 2013 and submitted that they would be filing additional written submissions by January 25, 2014. The Noticee’s main submissions in respect of the charges in the SCN made vide letters dated December 16, 2013 and January 22, 2014 are as follows : • The compliance track record of the Promoter Group comprising Noticees has been, except on two occasions, unblemished and therefore any alleged non-compliance was the result of stressful external circumstances that were entirely out of control of the promoter group which gave rise to a situation of genuine oversight. • Promoter Group made the requisite disclosure under Regulation 7(1A) of SAST Regulations 1997 to the target company. The disclosures dated January 4, 2005 aggregating to 2.13% of the share capital of the target company were made to the target company but not to the stock exchange, and hence the non-compliance only relates to a part of the requirement under Regulation 7(1A) of SAST Regulations 1997. (Copy of the disclosure made to the company was also enclosed). • Disclosure made by the promoter group under Regulation 7(1A) of the SAST regulations, 1997 to the target company was in su
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Source: SecMarx — sebi:ASK/AO-28-35/2014. 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.