sebi:EAD-2/AO/49/2013-14
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Facts / Headnote
Violation established; penalty of Rs. 1,00,000 imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 13(1)
- Reg. 13(3)
- Reg. 29(1)
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29(3)
Parties
- Shri Madanchand Prasanchand
Holding
The Noticee violated Regulation 13(1) and 13(3) read with 13(5) of the PIT Regulations and Regulation 29(1) and 29(2) read with 29(3) of the SAST Regulations by failing to make prescribed disclosures. A penalty of Rs. 1,00,000 under Section 15A(b) of the SEBI Act was imposed on Shri Madanchand Prasanchand.
Full text
Page 2 of 8 make the necessary disclosures as prescribed under Regulation 13(1) read with Regulation 13(5) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as the PIT Regulations) and Regulation 29(1) read with Regulation 29(3) of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 (hereinafter referred to as SAST Regulations). The Noticee failed to make the said disclosures thereby violating the provisions of law.
Page 3 of 8 Notice, Reply & Personal Hearing: 6. Accordingly, the undersigned issued a notice dated April 02, 2013 (hereinafter referred to as the ‘SCN’) to the Noticee in terms of Rule 4 of the Adjudication Rules requiring to show cause as to why an inquiry should not be held against him for the alleged violations. The SCN was duly delivered to the Noticee. The Noticee vide e-mail and letter dated April 19, 2013 replied to the said SCN. In the interest of natural justice and in order to conduct an inquiry as per Rule 4 (3) of the Adjudication Rules, an opportunity of personal hearing was granted to the Noticee vide notice dated June 19, 2013 on July 05, 2013. The Noticee attended the said hearing and reiterated the submissions made in his reply dated April 19, 2013. The Noticee further submitted that the non-disclosures were inadvertent and due to lack of knowledge he did not make the requisite disclosures as required under the stated Regulations. He produced the e-mail copies exchanged with the company in support of his earlier submissions. The Noticee has even submitted the copies of disclosures made by him now to stock exchange and the company vide his letters dated July 10, 2013.
Page 4 of 8 Relevant provisions of PIT Regulations:- Disclosure of interest or holding by directors and officers and substantial shareholders in a listed companies - Initial Disclosure 13.(1) Any person who holds more than 5% shares or voting rights in any listed company shall disclose to the company in Form A, the number of shares or voting rights held by such person, on becoming such holder, within 2 working days of :-
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Source: SecMarx — sebi:EAD-2/AO/49/2013-14. 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.