sebi:EAD-2/AO/DSR/RG/307/2014
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Facts / Headnote
Settlement order disposing of adjudication proceedings on payment of Rs. 6,80,000
Provisions invoked
- s. 21
- s. 23E
Regulations
- Reg. 17
- Reg. 15(1)
Parties
- Brady & Morris Engineering Company Limited
- W.H. Brady Company Limited
- Shri Pavan Gokulchand Morarka
- Ms. Rachna Morarka
- Shri Vaibhav Morarka
- Shivum Holding Pvt. Ltd
Holding
The adjudication proceedings initiated against the Applicants for non-compliance with the Minimum Public Shareholding (MPS) requirement through a non-prescribed mode of compliance are disposed of in terms of Regulation 15(1) of the Settlement Regulations, upon payment of Rs. 6,80,000.
Full text
Page 2 of 4 3. Sale of shares held by promoters through the secondary market i.e. OFS through Stock Exchange; 3. Subsequently, SEBI had issued another circular dated February 08, 2012 which inter-alia provided that listed companies may achieve the MPS requirement through Institutional Placement Programme. With a view to further facilitate listed companies to comply with MPS requirement within the time specified in the SCRR, SEBI had also issued the circular dated August 29, 2012 which specified the following additional methods to comply with the MPS requirement:-
Page 3 of 4 6. It was noticed that Brady & Morris Engineering Company Limited had sold 1,60,000 equity shares representing 7011% of the paid up capital of the Company on May 20, 2013 in the open market to one Trasnparent Agro Private Limited and others, pursuant to which the promoter holding was reduced to 73.75%. It is, therefore, alleged that the method adopted by the Brady & Morris Engineering Company Limited along with its promoters namely, W.H. Brady Company Limited, Shri Pavan Gokulchand Morarka, Ms. Rachna Morarka ,Shri Vaibhav Morarka and Shivum Holding Pvt. Ltd (hereinafter referred to as the Applicants) was not a prescribed mode of compliance in terms of the above referred circulars.
Page 4 of 4 placed before the High Powered Advisory Committee (HPAC) in its meeting held on September 26, 2014. After considering the facts and circumstances of the case, the HPAC recommended that the case may be settled on payment of ` 6,80,000/- (Rupees Six Lakh Eighty Thousand Only) towards settlement
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Source: SecMarx — sebi:EAD-2/AO/DSR/RG/307/2014. 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.