sebi:EAD/KS/MKG/AO/175/2018-19
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Facts / Headnote
Violation established; penalty of Rs. 4,00,000 imposed on the Noticee
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. 7(2)(b)
- Reg. 29(1)
- Reg. 30
- Reg. 31
Parties
- Kisan Mouldings Limited
Holding
The Noticee violated Regulation 7(2)(b) of the PIT Regulations by failing to disclose to BSE the preferential allotment of 11.17 lakh shares to promoter Polsons Traders LLP, and a monetary penalty of Rs. 4,00,000 under Section 15A(b) of the SEBI Act was imposed.
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 Kindly refer to the notice no. SEBI/EAD/KS/MKG/17411/2018 dated June 18, 2018 (hereinafter referred to as 'the said SCN’) received by Kisan Mouldings Limited (hereinafter referred to as ‘KML’/‘we’/’our’/’us’/‘Noticee’) issued for alleged violations of SEBI (Prohibition of Insider Trading) 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 allotment, the shareholding of M/s. Polsons Traders LLP increased from 3.99% of share capital to 9.49% of share capital. vi. We submit and say that as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, the explanatory statement forwarded to shareholders u/s 102 of The Companies Act, 2013 inter alia includes shareholding pattern of KML before and after the preferential issue, the identity of the proposed allottees, the percentage of post preferential issue capital that may be held by them and change in control, if any. vii. We submit that the notice of the Postal Ballot includes the shareholding pattern as per Regulation 31 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015 (LODR) before and after the preferential issue, identity of the proposed allottees including M/s. Polsons Traders LLP (page 5-8 of the notice of the Postal Ballot),. Percentage of the post preferential issue capital that may be held by M/s. Polsons Traders LLP etc. We submit and reiterate that this notice of Postal Ballot was sent to all the shareholders and was also submitted by us to the stock exchange i.e. BSE Limited. viii. We submit and reiterate that the required information that M/s. Polsons Traders LLP was being allotted shares, and the details of shareholding pattern of KML post preferential issue was in the public domain. We, therefore, submit and reiterate that we did not have any intention t
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Source: SecMarx — sebi:EAD/KS/MKG/AO/175/2018-19. 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.