sebi:EAD-2/DSR/RG/594-603/2017
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Facts / Headnote
Penalty imposed on Noticees for belated compliance with Minimum Public Shareholding norms
Provisions invoked
- s. 21
- s. 23
- s. 23E
- s. 23H
Parties
- Ganga Papers India Limited
- Ras Polytex Pvt. Ltd
- Sab Computing Pvt. Ltd
- Anju Kanoria
- Sadhana Kanoria
- Sandeep Kanoria
- Sanjay Kanoria
- Ganga Pulp & Papers Pvt. Ltd
- Saket Kanoria
- Pritu Chaudhary
Holding
The Noticees violated Rule 19(2)(b) and Rule 19A of the SCR Rules, 1957 read with Section 21 of SCRA, 1956 and Clause 40A of the Listing Agreement by complying with the Minimum Public Shareholding requirement with a delay of almost 17 months, and a monetary penalty of Rs. 10,00,000 was imposed under Section 23E of the SCRA, 1956.
Full text
Page 2 of 11 1957 (hereinafter referred to as ‘SCR Rules, 1957’) read with Clause 40A of the Listing Agreement and Section 21 of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as ‘SCRA, 1956’).
Page 3 of 11 of two weeks’ time to file their replies in the matter. Further, vide letter dated April 01, 2016, the Noticees submitted a common reply to the SCNs. Therefore, in the interest of natural justice and in order to conduct an inquiry as per Rule 4 (3) of the said SC(R) Adjudication Rules, vide notice dated May 04, 2016, an opportunity of personal hearing was granted to the Noticees on May 23, 2016. However, vide letter dated May 09, 2016, the Noticees requested for adjournment of the scheduled hearing and sought an opportunity of hearing to be granted to them any time in the last week of June
Page 4 of 11 SCR Rules, 1957: Requirements with respect to the listing of securities on a recognized stock exchange. 19(2) Apart from complying with such other terms and conditions as may be laid down by a recognized stock exchange, an applicant company shall satisfy the stock exchange that : (a)……………… (b) (i) at least twenty five percent of each class or kind of equity shares or debenture convertible into equity shares issued by the company, if the post issue capital of the company calculated at offer price is less than or equal to one thousand six hundred crore rupees; (ii) at least such percentage of each class or kind of equity shares or debenture convertible into equity shares issued by the company equivalent to the value of four hundred crore rupees, if the post issue capital of the company calculated at offer price is more than one thousand six hundred crore rupees but less than or equal to four hundred crore rupees; (iii) at least ten per cent of each class or kind of equity shares or debenture convertible into equity shares issued by the company, if the post issue capital of the company calculated at offer price is above four hundred crore rupees: Provided that the company referred to sub-clause (ii) or sub-clause (iii), shall increase its public shareholding to at least twenty five per cent within a period of three years from the date of listing of the securities, in the manner specified by the Securities and Exchange Board of India: Provide further that this clause
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Source: SecMarx — sebi:EAD-2/DSR/RG/594-603/2017. 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.