sebi:CFD-DCR/FIL/AO/DRK/VVK/EAD3-362/28/2013
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Facts / Headnote
Penalty imposed on the Noticee for violation of Regulation 8(3) of the Takeover Regulations, 1997
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 6
- Reg. 8(3)
Parties
- Farry Industries Limited
Holding
The Noticee, Farry Industries Limited, was held to have violated Regulation 8(3) of the Takeover Regulations, 1997 by failing to make yearly disclosures to stock exchanges for 12 consecutive years (1998-2009), and a penalty of Rs. 15,00,000 was imposed under Section 15A(b) of the SEBI Act, 1992.
Full text
Page 2 of 6 Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge the alleged violations committed by the Noticee under Section 15A(b) of the SEBI Act, the violations of Regulation 8(3) of the Securities and Exchange Board of India ( Substantial Acquisition of Shares and Takeovers) Regulations,1997 (hereinafter referred to as "Takeover Regulations") alleged to have been committed by the Noticee.
Page 3 of 6 6. I note that the Noticee has failed to submit its reply to the SCN and also failed to appear for the personal hearings granted to it. For the reasons mentioned above, I observe that the Noticee was provided with sufficient opportunity to submit its reply and be heard, however, the Noticee has failed to avail the same, and hence, I am constrained to proceed ex parte with the matter on the basis of the material available on record.
Page 4 of 6 (2) ....... (3) Every company whose shares are listed on a stock exchange, shall within 30 days from the financial year ending March 31, as well as the record date of the company for the purposes of declaration of dividend, make yearly disclosures to all the stock exchanges on which the shares of the company are listed, the changes, if any, in respect of the holdings of the persons referred to under sub-regulation (1) and also holdings of promoters or person(s) having control over the company as on 31st March." 9. In view of the above facts, it can be concluded that the noticee has failed to comply with regulation 8(3) of the said Takeover Regulations. Further, the failure on the part of the noticee was for 12 years which is repetitive in nature. Moreover, I have also noted that the Noticee being a listed company has failed to submit any reply to the SCN and also failed to appear for the personal hearings granted to it without furnishing any reasons.
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Source: SecMarx — sebi:CFD-DCR/FIL/AO/DRK/VVK/EAD3-362/28/2013. 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.