sebi:BM/AO-1/2018
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalty of Rs. 5,00,000 imposed on the Noticee under Section 15HB of the SEBI Act for providing misleading information to SEBI; charges under Regulation 8A(4) of the Takeover Regulations and Clauses 35 and 41 of the Listing Agreement not established.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
- s. 23
- s. 23E
Regulations
- Reg. 40
- Reg. 8A(4)
- Reg. 8A
- Reg. 8A(1)
Parties
- ICSAI
Holding
The Noticee ICSAI was found to have provided misleading information to SEBI regarding the relationship of certain entities with the Company and its promoters, and a penalty of Rs. 5,00,000 was imposed under Section 15HB of the SEBI Act. However, the charge of violating Regulation 8A(4) of the Takeover Regulations and Clauses 35 and 41 of the Listing Agreement by giving misleading declarations about pledged shares was not established.
Full text
Page 2 of 25 3. Investigation observed that the company had made a corporate announcement at NSE and BSE on March 18, 2009 that the company had secured work orders for a total contract value of Rs 464.17 crore from Bihar State Electricity Board (hereinafter referred to as ‘BSEB’), Maharashtra State Electricity Distribution Co. Ltd (hereinafter referred to as ‘Mahavitran’) and M.P.Poorv Kshetra Vidyut Vitaran Co. Ltd. (hereinafter referred to as ‘MPPKVVCL’). It was observed that certain entities bought large number of shares in February 2009, just a few days prior to the corporate announcement made by the company. These entities, namely Sravanthi Yakkanti (hereinafter referred to as 'Sravanthi') and Mary Ashwini (hereinafter referred to as 'Mary') had bought 3,93,683 shares and 11,92,000 shares at an average buy price of Rs 74.99 and Rs. 75 on February 25, 2009 respectively. Further, it was observed that one of the promoters of the company, Shri G. Bala Reddy, who is also the Chairman and Managing Director of the company, was one of the participants in such discussions/meetings that led to the signing of the work orders to the extent of Rs 464.17 crore. It was also observed that G. Bala Reddy, through his companies, M/s. BRG Energy Ltd. (BRG) and M/s.Sahasra Investments Ltd (Sahasra), funded the purchase of shares of ICSAI by Mary and Sravanthi. Anthony Pratap Reddy Gali (APRG), husband of Mary received around 5,64,449 shares in off market from Mary and Sravanthi and transferr
Page 3 of 25 of business/ professional relationship with the Company or were employee/ officer of the Company. However, Investigation observed that the information furnished by the Noticee was misleading in respect of the relationship of the Company/ its promoters/ directors/ top management with Mary, Sravanthi, Anthony Pratap Reddy Gali (APRG), Mohan Prakash Reddy Gopu and Saritha Gali.
Page 4 of 25 appointment order dated December 22, 2017 was communicated to the notice vide letter and email dated December 22, 2017.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:BM/AO-1/2018. 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.