sebi:EAD-2/AO/145/2013
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Facts / Headnote
Violation established; penalty of Rs. 1,00,000 imposed under Section 15A(b) of the SEBI Act
Provisions invoked
- s. 15A
- s. 15J
- s. 15
Regulations
- Reg. 13(4)
- Reg. 13(5)
Parties
- Shri Dhrenendra Shah
Holding
The Noticee, a promoter director of VEIL, violated Regulation 13(4) read with Regulation 13(5) of the PIT Regulations, 1992 by failing to disclose sales of 1,10,000 shares and 80,000 shares, and a penalty of Rs. 1,00,000 under Section 15A(b) of the SEBI Act was imposed.
Full text
Page 2 of 7 (record date July 31, 2009) and sub-division / stock split of Rs. 10 per share into shares of Re. 1 each (record date September 07, 2009). The Noticee sold / transferred 1,10,000 shares of VEIL on September 11, 2009 and 80,000 shares on October 21, 2009. The Noticee was required to make certain disclosures to VEIL and the stock exchange (BSE) as prescribed under Regulation 13(4) read with Regulation 13(5) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as the PIT Regulations), which the Noticee allegedly failed to do.
Page 3 of 7 6. In view of the above, I am proceeding with the inquiry taking into account the documents and material as available on record.
Page 4 of 7 (b) the acquisition or sale of shares or voting rights, as the case may be. 9. I note that the requirement of Regulation 13(4) read with 13(5) of the PIT Regulations are twofold, i.e., disclosure to the company and to the Stock Exchange by any person who is a director or officer of a listed company, the total number of shares or voting rights held and change in shareholding or voting rights, if there has been a change in such holdings which exceeds 5 lakhs in value or 25000 shares or 1% of total shareholding or voting rights, whichever is lower; and such disclosure has to be made within two working days of receipt of intimation of allotment of shares or the acquisition or sale of shares or voting rights.
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Source: SecMarx — sebi:EAD-2/AO/145/2013. 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.