sebi:EAD-2/DSR/RG/869/2017
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Facts / Headnote
Violation established; monetary penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 15F
Regulations
- Reg. 13(3)
- Reg. 13(5)
Parties
- Tata Steel Limited
Holding
The Noticee, Tata Steel Limited, violated Regulation 13(3) read with Regulation 13(5) of the PIT Regulations, 1992 by making required continual disclosures belatedly on both occasions and is liable for monetary penalty under Section 15A(b) of the SEBI Act, 1992, quantified at Rs. 10,00,000.
Full text
Page 2 of 12 to and was allotted 1,33,12,500 equity shares and 55,46,875 fully convertible debentures. Further, pursuant to its undertaking to apply for equity shares and fully convertible debentures (convertible into equity shares of the Target Company), in addition to the rights entitlement to the extent of any unsubscribed portion of the Rights Issue, the Noticee had also subscribed to and was allotted an additional 86,73,599 equity shares and 1,17,00,093 fully convertible debentures. On October 12, 2009, the target company had allotted 2,19,86,099 equity shares to the Noticee as part of its rights entitlement in terms of the rights issue. As a result, the shareholding of the Noticee in the target company had increased from 88,75,000 equity shares constituting 30.82% of the equity share capital of the target company (prior to the allotment of shares) to 3,08,61,099 equity shares constituting 42.88% of the equity share capital of the target company. Upon the said increase, the Noticee was required to make the necessary disclosures within two working days to the target company as required under Regulation 13(3) read with Regulation 13(5) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as the ‘PIT Regulations’). However, it was observed that the Noticee had made the said disclosures belatedly i.e. on July 02, 2012.
Page 3 of 12 5. SEBI, therefore, has initiated adjudication proceeding against the Noticee for the alleged violation of the provisions of Regulation 13(3) read with Regulation 13(5) of the PIT Regulations in the matter.
Page 4 of 12 However, vide letter dated November 29, 2017, the Noticee submitted that it would not be proceeding with the filing of settlement application in the matter and submitted its additional reply in the matter.
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Source: SecMarx — sebi:EAD-2/DSR/RG/869/2017. 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.