sebi:DSR/AO-08/2007-08
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Facts / Headnote
Proceedings against the three promoters dropped with no penalty; monetary penalty of Rs.50,000 imposed on Bhagyodaya Marketing Company Limited for violation of Regulation 8(3) of SAST
Provisions invoked
- s. 15A
- s. 15
Regulations
- Reg. 6
- Reg. 8
- Reg. 8(3)
- Reg. 6(1)
- Reg. 6(2)
- Reg. 8(2)
- Reg. 8(1)
Parties
- Mr. S.K. Agarwal
- Mr. Krishna Kejriwal
- Mr. Sitaram B. Parwal
- Bhagyodaya Marketing Company Limited
Holding
The allegations against the promoters for violation of Regulations 6(1), 6(3), 8(1) and 8(2) of SAST were not established and no penalty was imposed on them, while Bhagyodaya Marketing Company Limited was held to have violated Regulation 8(3) of SAST for financial year 2003-04 and penalized Rs.50,000.
Full text
Page 2 of 6 3. In view of the above, it was alleged that Mr. S.K. Agarwal, Mr. Krishna Kejriwal and Mr. Sitaram B. Parwal (hereinafter referred to as “the promoters”) had violated Regulations 6(1), 6(3), 8(1) and 8(2) of SAST for the years 1999 to 2001 and for the years 2004 to 2006.
Page 3 of 6 holdings of promoters or person(s) having control over the company as on 31st March. APPOINTMENT OF AO 7. I was appointed as Adjudicating Officer, vide orders dated June 28, 2007, to inquire into and adjudge under Section 15A(b) of the Securities and Exchange Board of India Act, 1992, the alleged violation of Regulations 6(1) & 6(3) for the year 1997 , 8(1) & 8(2) for the year 1999 to 2001 and 2004 to 2006 of SAST by the promoters and Regulation 8 (3) of SAST for the years 2003, 2004 and 2006 by the company.
Page 4 of 6 CONSIDERATION OF ISSUES AND FINDINGS THEREOF 12. I have carefully examined the reply letters dated August 17, 2007 submitted by all the three promoters. The authorized representative of the promoters, during the course of hearing held on November 20, 2007, submitted copies of the declarations made by the promoters to the company under Regulations 6(1), 6(3), 8(1) and 8(2) of SAST for the years 1997 to 2006, vide letters dated April 12, 1997, April 12, 1998, April 10, 2000, April 9, 2003, April 11, 2004, April 5, 2005, April 7, 2006 (S.K.Agarwal), April 11, 1997, April 12, 1998, April 11, 1999, April 11, 2000, April 14, 2001, April 15, 2002, April 11, 2003, April 10, 2004, April 11, 2005, April 11, 2006 (Sitaram B. Parwal), April 14, 1997, April 16, 1998, April 8, 1999, April 15, 2000, April 14, 2001, April 11, 2002, April 7, 2003, April 10, 2004, April 9, 2005, April 5, 2006 (Krishna Kejriwal). I have carefully examined all the letters submitted by the promoters and observed that all the letters have been duly acknowledged by the company. In view of the documentary evidence produced by the promoters showing the proof of making disclosures to the company, the allegations do not stand established. Therefore, I am convinced that it is not a fit case to impose any monetary penalty against the promoters.
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Source: SecMarx — sebi:DSR/AO-08/2007-08. 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.