sebi:EAD-12/AO/SM/EE/50-53/2017-18
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Facts / Headnote
Alleged violations of SEBI (PFUTP) Regulations by Noticee No. 3 and Code of Conduct for Stock Brokers by Noticee No. 4 not established; proceedings against Noticee No. 1 and 2 under Section 15A(b) for delayed disclosure under Regulation 8A(3)/(4) of SAST Regulations addressed with penalty provisions
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 7
- Reg. 199
- Reg. 3
- Reg. 4(1)
- Reg. 4(2)
- Reg. 200
- Reg. 2
- Reg. 3(a)
- Reg. 9
- Reg. 3(c)
- Reg. 3(b)
- Reg. 2(1)
- Reg. 8A(3)
- Reg. 35
- Reg. 4(2)(g)
- Reg. 8A
- Reg. 3(d)
Parties
- Noticee No. 1
- Noticee No. 2
- Noticee No. 3
- Noticee No. 4
Holding
The alleged violations of Regulations 3(a), (b), (c), (d), 4(1), 4(2)(a) and (g) of SEBI (PFUTP) Regulations by Noticee No. 3 and Clause A(2) of the Code of Conduct for Stock Brokers read with Regulation 9 of Stock Broker Regulations 1992 by Noticee No. 4, do not stand established against the Noticees. Noticee No. 1 and 2 were found to have delayed disclosure of pledge invocation beyond the 7 working days required under Regulation 8A(3) of SAST Regulations.
Full text
In the matter of M/s Vikas WSP Ltd Page 2 of 23 3. Based on the findings of the investigation, SEBI initiated Adjudication Proceedings against Noticee No. 1 and 2 under section 15 A (b) of SEBI Act, against Noticee No. 3 under section 15HA of SEBI Act and under Section 15 HB of SEBI Act against Noticee No. 4 for the aforesaid alleged contravention of provisions of law.
In the matter of M/s Vikas WSP Ltd Page 3 of 23 5.2. Details of Promoter shareholding (Quarter ended June 2011 – Quarter ended June 2012) is as under:
In the matter of M/s Vikas WSP Ltd Page 4 of 23 The Noticee admit that there is a delay of few days in making disclosure in terms of Regulation 8A(3) of SEBI (SAST) Regulations, 1997 by the Noticee No. 1. The Noticee wish to clarify that apart from the pledged shares sold by IFCI, the Noticee have not purchased or sold any shares of the company during relevant period. The delay in filing the disclosures pursuant to Regulations 8A (3) and (4) of the SEBI (SAST) Regulations, 1997 were purely unintentional and due to inadvertence. There was no malafide on their part nor they had intended to make any personal gain for themselves from any of the said transactions. Moreover, the alleged violation is more technical in nature”.
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Source: SecMarx — sebi:EAD-12/AO/SM/EE/50-53/2017-18. 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.