sebi:CFD/EIL/AO/DRK-VB/EAD3/710-713/35-38/2015
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Facts / Headnote
Penalties imposed jointly and severally and individually for violations of SAST Regulations, 1997 and SAST Regulations, 2011
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 181
Regulations
- Reg. 13
- Reg. 11
- Reg. 199
- Reg. 10
- Reg. 14
- Reg. 14(1)
- Reg. 11(1)
- Reg. 4
- Reg. 29(2)
- Reg. 13(1)
- Reg. 201
- Reg. 3
- Reg. 15
- Reg. 13(2)(c)
Parties
- Shri. Anil Monga
- Shri Rajesh Monga
- Ms. Renu Monga
- Shri B.B Gandhi
Holding
The Adjudicating Officer held that the four promoter-group noticees violated Regulation 11(1) read with Regulation 14(1) of SAST Regulations, 1997, Regulation 13(2)(c) read with Regulation 13(1) and Regulation 29(2) of SAST Regulations, 2011 and imposed penalties under Section 15H(ii) and Section 15A(b) of the SEBI Act, 1992.
Full text
Page 2 of 12 with Rule 3 of Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under Section 15A (b) and Section 15H (ii) of the SEBI Act for the violations of Regulation 11 (1) read with Regulation 14 (1) of the SAST Regulations,1997 and Regulations 13(2)(c) read with Regulation 13 (1),Regulation 29(2) of the SAST Regulations,2011 alleged to have been committed by Shri. Anil Monga, Shri Rajesh Monga, Ms. Renu Monga and Shri B.B Gandhi (hereinafter referred to as 'Promoter / Promoter group / noticees') and the same was communicated vide proceedings of the Whole Time Member appointing Adjudicating Officer dated April 26,2013.
Page 3 of 12 Regulation Due Date of compliance Actual Date of Compliance Delay (No of days) Regulation 13(2)(c) read with Regulation 13(1) 27.02.2012 22.05.2012 85
Page 4 of 12 there was no actual increase in the number of shares held by them and no increase in the voting rights exercised by them pre and post forfeiture. • Under the new SAST Regulations 2011, an automatic exemption is given for any change in holding subsequent to the Buy Back of securities which is a corporate action of the Company and may result in passive increase in the shareholders voting rights. Likewise, even in case of forfeiture, any change is Passive in nature without any act on part of the Promoters.
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Source: SecMarx — sebi:CFD/EIL/AO/DRK-VB/EAD3/710-713/35-38/2015. 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.