sebi:EAD/KS/VB/AO/233/2019-20
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Facts / Headnote
Partially in favour of Noticee: violation of Regulation 7(1A) r/w 7(2) of SAST, 1997 not established; matter concerning alleged violation of Section 13, 16 and 18 of SCRA, 1956 considered with penalty under Section 23J factors
Provisions invoked
- s. 15A
- s. 15
- s. 13
- s. 16
- s. 18
- s. 23
- s. 23H
- s. 17
- s. 23J
- s. 16(1)
- s. 29A
Regulations
- Reg. 7
- Reg. 11
- Reg. 199
- Reg. 10
- Reg. 7(2)
- Reg. 11(2)
Parties
- Garuda Plant Products Ltd.
Holding
The violation of Regulation 7(1A) read with Regulation 7(2) of SAST, 1997 could not be established against the Noticee because the shares were acquired in 1999-2000, prior to the notification of Regulation 7(1A) on October 24, 2001. The Noticee's alleged delay in payment for the off-market transaction was considered under Section 23J factors of SCRA, 1956.
Full text
Page 2 of 31 of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as ‘SAST,1997’)
Page 3 of 31 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 4. A Show Cause Notice (hereinafter referred to as “SCN”) dated November 27, 2013 was issued to the Noticee by the erstwhile AO under Rule 4(1) of the Adjudication Rules communicating the alleged violations. The Noticee was also called upon to show cause as to why an inquiry should not be initiated against him in terms of Rule 4 of the Adjudication Rules and penalty be not imposed under 15A(b) for the alleged violations of Regulations 7(1A) r/w 7(2) of SAST,1997.
Page 4 of 31 such purchase or sale along with the aggregate shareholding after such acquisition or sale. Explanation.—For the purposes of sub-regulations (1) and (1A), the term 'acquirer' shall include a pledgee, other than a bank or a financial institution and such pledgee shall make disclosure to the target company and the stock exchange within two days of creation of pledge. 7. (2) The disclosures mentioned in sub-regulations (1) and (1A) shall be made within two days of— (a) the receipt of intimation of allotment of shares; or (b) the acquisition of shares or voting rights, as the case may be. "
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Source: SecMarx — sebi:EAD/KS/VB/AO/233/2019-20. 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.