sebi:Adjudication_Order_in_the_matter_of_IQ_Infotech_Limited
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Facts / Headnote
Penalty of ₹5.00 lakh imposed on IQ Infotech Ltd. for violations of PIT Regulations; no penalty imposed for alleged PFUTP Regulations violations.
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 13
- Reg. 13(4)
- Reg. 12(1)
- Reg. 3
- Reg. 45
- Reg. 13(6)
- Reg. 3(c)
- Reg. 12
- Reg. 12(2)
Parties
- IQ Infotech Ltd.
- Dr. K.R. Srinivasan
- Mr. Sudarshan Srinivasan
Holding
IQ Infotech Ltd. was found to have violated Regulation 13(6) and Regulations 12(1) and 12(2) of the PIT Regulations, and a penalty of ₹5.00 lakh was imposed. The noticees were not found guilty of violating Regulations 3(c), 4(1), 4(2)(k) and 4(2)(r) of the PFUTP Regulations as the evidence was insufficient to prove fraud and manipulation.
Full text
2 2. A show cause notice dated February 26, 2009 was issued under Rule 4 of the Adjudicating Rules, to the noticees asking them to show cause as to why an inquiry should not be held against them and the prescribed penalty for the alleged violation of PFUTP Regulations and PIT Regulations can not be imposed under Sections 15A(b), 15HA and 15HB of the SEBI Act.
3 5. The relevant provisions of Regulation 13 of PIT Regulations are as follows: “Disclosure of interest or holding by directors and officers and substantial shareholders in listed companies ‐ Initial Disclosure. 13. ……………………… (4) Any person who is a director or officer of a listed company, shall disclose to the company in Form D, the total number of shares or voting rights held and change in shareholding or voting rights, if there has been a change in such holdings from the last disclosure made under sub‐regulation (2) or under this sub‐regulation, and the change exceeds Rs. 5 lakh in value or 25,000 shares or 1% of total shareholding or voting rights, whichever is lower. (5) The disclosure mentioned in sub‐regulations (3) and (4) shall be made within 4 working days of: (a) the receipts of intimation of allotment of shares, or (b the acquisition or sale of shares or voting rights, as the case may be. Disclosure by company to stock exchanges. (6) Every listed company, within five days of receipt, shall disclose to all stock exchanges on which the company is listed, the information received under sub‐ regulations (1), (2), (3) and (4) in the respective formats specified in Schedule III.”
4 directors. Regulation 13(4) places the obligation on the directors/officers of a listed company to disclose the total number of shares or voting rights held and change in shareholding or voting rights, if there has been a change in such holdings from the last disclosure made where the change exceeds `5 lakh in value or 25,000 shares or 1% of total shareholding or voting rights, whichever is lower. IQI was in the course of investigation, asked to submit the copies of disclosure documents received from the directors, under Regulation 13(4) and also the disclosures made by the IQI to the Stock Exchange in terms of Regulation 13(6) of the PIT Regulations. While IQI provided copies of the disclosures received from the directors under Regulation 13(4), no confirmation regarding any disclosures to the exchanges under Regulation 13(6) was submitted by IQI. Further in its reply dated 24th March, 2009 to the show cause notice, IQI has not made any specific submissions regarding compliance with the mandatory disclosures under Regulation 13(6). Therefore, I find that IQI has violated Regulation 13(6) of PIT Regulations.
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Source: SecMarx — sebi:Adjudication_Order_in_the_matter_of_IQ_Infotech_Limited. 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.