sebi:EAD-2/AO/DSR/BKM/RG/563-564/2015
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Facts / Headnote
Penalty imposed of Rs. 25,00,000/- jointly and severally on the Noticees under Section 15H(ii) of the SEBI Act for violation of Regulation 11(2) of the SAST Regulations.
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 11
- Reg. 10
- Reg. 11(2)
Parties
- GMR Holdings Private Limited
- Shri Srinivas Bommidala
Holding
The Noticees, GMR Holdings Pvt. Ltd (Acquirer) and Shri Srinivas Bommidala (PAC), violated Regulation 11(2) of the SAST Regulations by acquiring shares through bulk deals without making a public announcement, and are liable for a monetary penalty under Section 15H(ii) of the SEBI Act.
Full text
Page 2 of 12 equity capital of Parrys Sugar 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 reiterated the submissions made by the Noticees vide their common reply dated September 15, 2015. Consideration of Issues, Evidence and Findings:
Page 4 of 12 with him, additional shares or voting rights entitling him upto five per cent. (5%) voting rights in the target company subject to the following:- (i) the acquisition is made through open market purchase in normal segment on the stock exchange but not through bulk deal /block deal/ negotiated deal/ preferential allotment; or the increase in the shareholding or voting rights of the acquirer is pursuant to a buy back of shares by the target company; (ii) thepost acquisition shareholding of the acquirer together with persons acting in concert with him shall not increase beyond seventy five per cent.(75%).
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Source: SecMarx — sebi:EAD-2/AO/DSR/BKM/RG/563-564/2015. 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.