sebi:ASK/RGA/AO/39/2014-15
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Facts / Headnote
Violation upheld; monetary penalty of Rs. 2,00,000 imposed on the Noticee under section 15A(b) of the SEBI Act.
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 11
- Reg. 2
- Reg. 11(1)
- Reg. 7(2)
Parties
- M/s Shree Bhawani Paper Mills Ltd. (Noticee)
Holding
The Noticee violated regulation 7(1A) read with regulation 7(2) of the SAST Regulations, 1997 by failing to disclose within two days the acquisition of 22,50,000 shares (6.46% of share capital) through preferential allotment, and a monetary penalty of Rs. 2,00,000 was imposed under section 15A(b) of the SEBI Act.
Full text
Adjudication order in the matter of M/s Shree Bhawani Paper Mills Ltd. Page 2 of 10 July 31 , 2014 2. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) examined the letter of offer pertaining to the aforesaid open offer and alleged that the Noticee had violated regulation 7(1A) read with 7(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as “SAST Regulations, 1997”).
Adjudication order in the matter of M/s Shree Bhawani Paper Mills Ltd. Page 3 of 10 July 31 , 2014 6. The Noticee had not filed any reply to the aforesaid SCN. 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 personal hearing on May 09, 2014 vide notice dated April 17, 2014. The Noticee vide letter dated May 02, 2014, had requested for adjournment of hearing. Accordingly, another opportunity of hearing was granted to the Noticee on June 04, 2014 vide letter dated May 12,
Adjudication order in the matter of M/s Shree Bhawani Paper Mills Ltd. Page 4 of 10 July 31 , 2014 • Requirement to make disclosure under regulation 7(1A) of SAST Regulations,1997 arises when there is a purchase or sale of 2% shares. In the present case, there is fresh allotment of shares and not purchase of shares. • Shareholding came down by 2.66%. Reduction of holding post fresh allotment is not due to selling any shares.
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Source: SecMarx — sebi:ASK/RGA/AO/39/2014-15. 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.