sebi:EAD-2/DSR/RG/31-32/2014
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Facts / Headnote
Proceedings against Noticee No. 2 abated; penalty of Rs. 12,00,000 imposed on Noticee No. 1 under Section 15A(b) of the SEBI Act.
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 109B
Regulations
- Reg. 13
- Reg. 13(1)
- Reg. 13(3)
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29(3)
- Reg. 29(1)
Parties
- Smt Devyani Chandrakant Doshi (Noticee No. 1)
- Shri Chandrakant Nanalal Doshi (Noticee No. 2)
Holding
Noticee No. 1 violated Regulation 29(1) read with Regulation 29(3) of the SAST Regulations, 2011 and Regulation 13(1), 13(4A) read with Regulation 13(5) of the PIT Regulations by failing to make required disclosures after her shareholding increased from 3.66% to 11.22%, and is liable for a penalty of Rs. 12,00,000 under Section 15A(b) of the SEBI Act. Proceedings against Noticee No. 2 stand abated as he expired on January 05, 2013.
Full text
Page 2 of 10 the shareholding of Noticee No. 2 came down to zero from 27,77,000 shares (7.56%). In view of the said increase / change in the shareholding, the Noticees being the promoters of REL were required to make the necessary disclosures as prescribed under Regulation 13(1), 13(3) & 13(4A) read with Regulation 13(5) the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as the PIT Regulations) and Regulation 29(1) & 29(2) read with Regulation 29(3) of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 (hereinafter referred to as SAST Regulations). The Noticees failed to make the said disclosures, thereby, violating the provisions of law.
Page 3 of 10 initiated against Noticee No. 2 stand abated. The Noticee No. 1 in the said letter also mentioned that the said transfer of shares was mere transmission of shares on the basis of nomination by shareholders under Section 109B of the Companies Act, 1956. The Noticee No. 1 also requested for a period of 30 days to submit her detailed reply to the SCN. However, no reply was received from her.
Page 4 of 10 (b) Does the violation, if any, on the part of the Noticees attract any penalty under Sections 15A (b) of the SEBI Act?
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Source: SecMarx — sebi:EAD-2/DSR/RG/31-32/2014. 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.