sebi:EAD/NP/AS/AO/38/2017

SEBI · SEBI · 2015-02-14 · Nagendraa Parakh, Adjudicating Officer

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Facts / Headnote

Violation established; penalty of Rs 2,00,000 imposed under Section 15A(b) of SEBI Act

Provisions invoked

• s. 15A
• s. 15
• s. 15J

Regulations

• Reg. 13
• Reg. 2
• Reg. 13(5)

Parties

• Smt. Vijaya Maganti

Holding

The noticee violated Regulations 13(4A) read with 13(5) of SEBI (PIT) Regulations, 1992 by failing to timely disclose sale of shares as part of promoter group. A penalty of Rs 2,00,000 under Section 15A(b) of the SEBI Act, 1992 was imposed.

Full text

P a g e 2 | 8 3. However it is noted from investigation that the noticee failed to make disclosures for sale of her shares (change of 25,000 shares) in accordance with Regulation 13(4A) read with 13 (5) of the SEBI (PIT) Regulations, 1992. The company vide their reply dated February 14, 2015 also confirmed that it had not received any disclosure from the noticee. In view of the above, it was alleged that the noticees failed to make disclosures as required under Regulation 13(4A) read with 13 (5) of the SEBI (PIT) Regulations, 1992.

P a g e 3 | 8 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 5. A show-cause notice (SCN) no. EAD/NP/JS/OW/2894/2016 dated February 3, 2016 was issued to the noticee under rule 4 of the AO Rules to show-cause as to why an inquiry should not be initiated against noticee and penalty be imposed upon it under section 15A(b) of SEBI Act for the alleged violation specified in the said SCN. The noticee was given 15 days of time to make her submission against the allegations made in SCN. The noticee vide her email dated 22nd February 2016 requested for 10 days of additional time to respond to the SCN and the same was allowed vide email dated February 22, 2016 from the office of Adjudicating Officer.

P a g e 4 | 8 I was not aware that disclosures are to be made for sale of shares. I humbly submit that it is an honest omissions out of ignorance but not a deliberate violation or noncompliance of SEBI Regulations/ Guidelines. I have not made any undue profit in transaction or caused any loss to any investor.

Source: SecMarx — sebi:EAD/NP/AS/AO/38/2017. 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.