sebi:BM/AO-145/2011
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Facts / Headnote
Penalty imposed on Noticee for failure to make disclosures under SAST and PIT Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 13
- Reg. 13(1)
- Reg. 7(2)
Parties
- Ashok Arjan Vaswani
Holding
The Noticee violated Regulation 13(1) of PIT Regulations and Regulation 7(1) read with 7(2) of SAST Regulations by failing to disclose when his shareholding crossed 5% of the paid-up capital of the company, and a penalty of Rs. 1,50,000 was imposed under Section 15A(b) of the SEBI Act.
Full text
______________________________________________________________________________________ Ashok Arjan Vaswani in the matter of Vidhi Dyestuffs Manufacturing Limited Page 2 of 13
______________________________________________________________________________________ Ashok Arjan Vaswani in the matter of Vidhi Dyestuffs Manufacturing Limited Page 3 of 13 Rules to show cause as to why an inquiry should not be held and penalty be not imposed under Section 15A (b) of SEBI Act for the alleged violation specified in the said SCN. The said SCN was delivered and acknowledged by the Noticee. Noticee vide letter dated July 20, 2011 submitted as follows: a. That I and my wife have been non‐resident Indians (NRI’s) for a very long time (over 25 years) and have been staying in Hongkong. b. That my and my wife’s actual shareholding was 1,80,900 and 1,81,400 shares respectively. However, the original face value of the shares was Rs. 10 and later on during the year 2005 the shares were split into face value of Re. 1 each. As a result, due to split in the face value of the shares, the number of shares in the hands of all the shareholders increased tenfold. c. That the shares in question held by me and my wife in the company were allotted to us vide the company letter bearing no. DDS/VIDHI/NRI/00017/96 dared April 22, 1996, in the IPO made by the company at that time. The details of the said allotments are as under: i. Ashok Arjan Vaswani jointly with his wife – 180900 equity shares. ii. Ashok’s wife jointly with Ashok Arjan Vaswani – 181400 equity shaers. d. That in both the cases all the said
______________________________________________________________________________________ Ashok Arjan Vaswani in the matter of Vidhi Dyestuffs Manufacturing Limited Page 4 of 13 h. That I opened a demat account bearing no. 20136609 on August 10, 2010, with Indian Overseas Bank. Similarly, my wife also opened a demat account bearing no. 20136594 with Indian Overseas Bank. However, I was advised that as I intended to sell all the shares held by me and my wife, I should have all the shares credited in my demat account as that would facilitate the giving of instructions to the bank. i. That as per the advise I converted all the 1809000 shares held by me jointly with my wife as also 1814000 shares held by me as second holder along with my wife as the first holder and deposited the said shares in the said newly opened demat account. j. That none of the shares were “acquired” or “purchased” either in the market or in off‐market deal. The shares in question were always held by me since the original allotment made by the company during the year 1996. k. That in the circumstances, you would appreciate that there was nothing to disclose to the BSE as there was no fresh acquisition. l. That I got the shares dematted and opened separate demat accounts and later put all the shares in a single account with a view to dispose of all the shares held by me and my wife.
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Source: SecMarx — sebi:BM/AO-145/2011. 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.