sebi:EAD-2/DSR/RG/806-810/2017
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Facts / Headnote
Penalty imposed on all Noticees jointly and severally for delayed public announcement
Provisions invoked
- s. 15
- s. 81
- s. 15H
- s. 15J
- s. 15F
Regulations
- Reg. 4
- Reg. 13(2)
- Reg. 3
- Reg. 15
- Reg. 10
- Reg. 5
- Reg. 3(1)
- Reg. 14
Parties
- Shri Radheyshyam Lahoti
- Lahoti Exports Private Limited
- Quality Products Marketing Private Limited
- Shri Ramawtar Lahoti
- Focus Investments & Traders Private Limited
Holding
The Noticees violated Regulation 3(1) read with Regulation 13(2) of the SAST Regulations by making the public announcement with a delay of 945 days, and a monetary penalty of Rs. 5,00,000 was imposed jointly and severally on all five Noticees under Section 15H(ii) of the SEBI Act, 1992.
Full text
Page 2 of 13 2. It was observed that the Noticees had crossed 25% voting rights in the target company SEIL pursuant to the market purchase of 13,34,200 equity shares on September 22, 2012 and thereby, had triggered Regulation 3(1) of the SAST Regulations. Thus, in terms of Regulation 13(2) of the SAST Regulations, the Noticees were required to make a public announcement on September 26, 2012 itself. However, it was observed that the said public announcement was made only on April 29, 2015 and that too subsequent to the SEBI order dated January 23, 2015 directing the Noticees to make a public announcement to acquire shares of the target company and pay interest at the rate of 10% p.a. for the delay.SEBI, therefore, has initiated adjudication proceedings against the Noticees for the alleged violation of the provisions of Regulation 3(1) read with Regulation 13(2) of the SAST Regulations by making with public announcement with a delay.
Page 3 of 13 Ramawatar Lahoti submitted a preliminary reply to the SCN and further stated that the said four Noticees are filing a consent application within a period of one week from the date of the letter in the matter. Further, again vide letter dated December 15, 2016, Shri Radheyshyam Lahoti submitted a reply to the SCN on behalf of the abovementioned three other Noticees and reiterated that the said Noticees would be filing a consent application with SEBI within a period of one week from the date of the letter in the matter. Vide office note dated May 04, 2017, Enforcement Department, SEBI intimated that Shri Radheyshyam Lahoti, Lahoti Exports Pvt. Ltd, Quality Products Marketing Pvt. Ltd and Shri Ramawatar Lahoti have submitted a consent application with SEBI which was duly registered. In view of the same, the Adjudication proceedings in respect of the said Noticees were kept in abeyance.
Page 4 of 13 Traders Limited, also submitted additional submissions vide email dated October 19, 2017 Consideration of Issues, Evidence and Findings
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Source: SecMarx — sebi:EAD-2/DSR/RG/806-810/2017. 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.