sebi:EAD-2/DSR/RG/PU/273/2014
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Facts / Headnote
Penalty imposed on Noticee for failure to disclose change in shareholding
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 13
- Reg. 13(4)
Parties
- Shri S. N. Vardarajan
Holding
The Noticee, a Director of IHPML, violated Regulation 13(4) read with Regulation 13(5) of the PIT Regulations by failing to disclose the sale of 58,500 shares to the company within four working days, and is liable for a monetary penalty of Rs. 2,00,000 under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 8 Regulations,1992 (herein after referred to as the 'PIT Regulations'). It was alleged that the Noticee had failed to do so. Appointment of Adjudicating Officer
Page 3 of 8 Consideration of Issues, Evidence and Findings 6. I have carefully perused the charges levelled against the Noticee as mentioned in the SCN, written submissions and all the documents as available on record. In the instant matter, the following issues arise for consideration and determination:
Page 4 of 8 58,500 shares of IHPML on April 21, 2003 which reduced his shareholding in IHPML to 6,49,700 (6.88%). Since, the change in shareholding exceeded 25,000 shares, the Noticee being a Director was under an obligation to make the necessary disclosures to the company as required under Regulation 13(4) read with 13(5) of the PIT Regulations. However, the Noticee was alleged to have failed to disclose the same.
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Source: SecMarx — sebi:EAD-2/DSR/RG/PU/273/2014. 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.