sebi:CFD/IGPL/AO/DRK-BM/EAD-3/391/57-2013
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Facts / Headnote
Consolidated penalty imposed on noticees jointly and severally
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 11
- Reg. 11(1)
Parties
- Ms. Usha Singhania
- Shri Kamal Singhania
Holding
The noticees violated Regulation 7(1A) of the Takeover Regulations by failing to disclose their acquisition of 4,00,000 shares constituting 7.92% of IGPL on March 31, 2002, and a consolidated penalty of Rs. 2,00,000 under Section 15A(b) of the SEBI Act was imposed on them jointly and severally.
Full text
Page 2 of 8 Show Cause Notice, Reply and Hearing 3. A Show Cause Notice bearing number A&E/DRK/BM/3765/2013 dated February 12, 2013 (hereinafter referred to as SCN) was served on the noticees under Rule 4 (1) of the Adjudication Rules, requiring the noticees to show cause as to why an inquiry should not be held against them and penalty should not be imposed under Section 15A (b) of the SEBI Act for the alleged failure of the noticees to make disclosure under Regulation 7 (1A) of the Takeover Regulations. The SCN alleged that the noticees were the former promoters of Indo Green Projects Limited (presently known as IITL Projects Limited and hereinafter referred to as IGPL). The noticees had together acquired 4,00,000 shares of IGPL constituting 7.92% of the share capital on March 31, 2002. The said acquisition increased the joint shareholding of the noticees in IGPL from 21,28,900 shares constituting 42.15% to 25,28,900 shares constituting 50.07%. The SCN observed that the noticees had acquired IGPL in the year 1998 as persons acting in concert (PAC) and were in the Board of Directors of IGPL when they consolidated their holding by acquiring 4,00,000 shares as mentioned above. Therefore, it was observed that the noticees had made the above acquisition as PAC. However, no disclosure was made by the noticees to IGPL in respect of the said acquisition as required under Regulation 7 (1A) of the Takeover Regulations.
Page 3 of 8 sought a further extension of two week's time for filing reply, citing doctor's advice of complete bed rest for Ms. Usha Singhania.
Page 4 of 8 6. On considering the reply of the noticees and the facts and circumstances of the case, it was decided to conduct an inquiry in the matter and as requested by the noticees, an opportunity of personal hearing was granted vide hearing notice dated June 14, 2013, granting a personal hearing to the noticees on July 8, 2013. The aforesaid personal hearing notice was served on the noticees by hand delivery and the proof of service is available on record. The said personal hearing was rescheduled to July 19, 2013 and the same was communicated to the noticees vide letter dated July 2, 2013. In response to the hearing notice, Shri Aditya Bhansali and Shri Shubhadip Choudhuri from Mindspright Legal, the Authorised Representatives (ARs) of the noticees appeared for the personal hearing on July 19, 2013. The ARs reiterated the
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Source: SecMarx — sebi:CFD/IGPL/AO/DRK-BM/EAD-3/391/57-2013. 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.