sebi:EAD-2/AO/DSR/BKM/RG/500-513/2015
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Facts / Headnote
Penalty imposed of Rs. 25,00,000/- jointly and severally on the Noticees for violation of Regulation 11(2) of SAST Regulations; proceedings against four dissolved entities abated.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 11
- Reg. 10
- Reg. 11(2)
Holding
The Noticees, being acquirers holding between 55% and 75% of shares along with persons acting in concert, violated Regulation 11(2) of the SAST Regulations by acquiring additional shares through bulk deals without making a public announcement, and are liable for penalty under Section 15H(ii) of the SEBI Act.
Full text
Page 2 of 12 1992 (hereinafter referred to as the „Act‟) and various Rules and Regulations made there under. 2. Upon examination, it was, inter alia, observed that Rajratan Investments Limited, Promoter entity of Rajratan, along with the Persons Acting in Concert (PACs) namely, Shri Chandanmal Chordia, Ms Shantadevi Chordia, Chandanmal Rajmal HUF, Shri Sunil Chordia, Rajratan Resources Pvt. Limited, Ms Sangita Sunil Chordia, Yashovardhan Chordia, Baby Shubhika Chordia, Sunil Chandalmal HUF, Chandanmal Shantadevi HUF, Sunil Kumar Shantadevi HUF, Subhika Chordia Family Trust and Yashovardhan Chordia Family Trust had acquired 80,683 shares of Rajratan on February 09, 2009 constituting 1.85% of the total equity capital through bulk deal. However, it was observed that no public announcement was made for the said acquisition by them as required under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as the 'SAST Regulations').
Page 3 of 12 Shubhika Chordia, Sunil Chandalmal HUF, Chandanmal Shantadevi HUF, Sunil Kumar Shantadevi HUF, Subhika Chordia Family Trust and Yashovardhan Chordia Family Trust had acquired 26,500 shares of Rajratan constituting 0.61% of the total equity capital through bulk deal. However, it was again observed that no public announcement was made for the said acquisition by them as required under the SAST Regulations.
Page 4 of 12 2015, one Shri Shubham Jain, requested for adjournment of the hearing by 15 days on behalf of the Noticees. The said request was partly acceded to and vide notice dated August 07, 2015, another opportunity of personal hearing was granted to the Noticees on August 14, 2015. In the meantime, vide letter dated August 13, 2015, Shri Sunil Chordia submitted a reply to the SCNs on behalf of all the Noticees except Yashowardhan Chordia Family Trust, Shubhika Chordia Family Trust, Sunilkumar Shantadevi HUF and Chandanmal Shantadevi HUF which have since been dissolved as submitted by one of the Noticees Shri Sunil Chordia .
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Source: SecMarx — sebi:EAD-2/AO/DSR/BKM/RG/500-513/2015. 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.