sebi:EAD/KS/MKG/AO/172/2018-19
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Facts / Headnote
Violation of Regulation 7(2)(a) of PIT Regulations held established; penalty of Rs. 2,50,000 imposed under Section 15A(b) of SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 15F
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 13(1)
- Reg. 29(3)
- Reg. 29
- Reg. 7(2)
- Reg. 7(2)(a)
- Reg. 2(1)(l)
- Reg. 29(1)
- Reg. 30
- Reg. 31
- Reg. 77(1)
Parties
- Polsons Traders LLP
Holding
The Noticee, a promoter of Kisan Mouldings Ltd. allotted 11.17 lakh shares by preferential allotment on April 16, 2016, violated Regulation 7(2)(a) of PIT Regulations by failing to disclose to the company, and is liable to a penalty of Rs. 2,50,000 under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 16 Order in the matter of Kisan Moulding Limited adjudge under Section 15A(b) of SEBI Act, the alleged violation of the provisions of law by Noticee.
Page 3 of 16 Order in the matter of Kisan Moulding Limited Regulations, 2015, (hereinafter referred to as ‘PIT Regulations’) while dealing in the scrip of Kisan Mouldings Ltd. (hereinafter referred to as ‘KML’).
Page 4 of 16 Order in the matter of Kisan Moulding Limited domain. We, therefore, submit and reiterate that we did not have any intention to conceal or hide our shareholding in KML from anyone. ix. We submit that the main purpose of disclosure stipulated as per PIT Regulations is that the small investor is immediately aware of any significant happening in a listed company so that he is able to take an informed decision. I submit and reiterate that, in our case, the information that Poisons Traders LLP would hold a certain percentage of share capital of KML was in the public domain even prior to the allotment of shares to us. Hence, there is no question of non-disclosure on our part. x. We submit and reiterate that we have not filed the disclosures under the respective regulations in respective format but there has been no nondisclosure on our part. We further submit that due to non-filing of relevant disclosures, no gain or advantage has occurred to and no loss or harm has been caused to any investors. We submit and reiterate that not filing of relevant disclosures was due to the difference in understanding of the relevant regulations as interpreted by us and as interpreted by SEBI. xi. We submit and reiterate that we did not have any malafide intention to hide the information and further the information was already available in public domain before we were allotted such shares. Hence, we submit that we did not have any intention to hide nor did we hide any information from g
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Source: SecMarx — sebi:EAD/KS/MKG/AO/172/2018-19. 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.