sebi:EAD-2/DSR/VVK/252/2014
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Facts / Headnote
Penalty imposed on Noticee for violation of Regulation 8(3) of SAST Regulations, 1997
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 8
- Reg. 8(3)
Parties
- Sunrise Proteins Limited
Holding
The Noticee, Sunrise Proteins Limited, violated Regulation 8(3) of the SAST Regulations, 1997 by failing to make annual disclosures to the stock exchange for 13 consecutive years, and is liable for a monetary penalty of Rs. 5,00,000 under Section 15A(b) of the SEBI Act, 1992.
Full text
Page 2 of 7 SHOW CAUSE NOTICE, HEARING & REPLY 3. A Show Cause Notice (SCN) dated 10th July, 2014, in terms of the provisions of Rule 4(1) of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (Adjudication Rules) was issued to the Noticee calling upon the Noticee to show cause as to why an inquiry should not be held against it and penalty be not imposed under Section 15A(b) of the SEBI Act, 1992 for the alleged violations. The noticee submitted its reply vide letter dated the 16th July, 2014.
Page 3 of 7 FINDINGS At this juncture, I note that Regulation 8(3) of SAST Regulations, 1997 reads as under: Reg. 8 - Continual Disclosures " 8(3) Every company whose shares are listed on a stock exchange, shall within 30 days from the financial year ending March 31, as well as the record date of the company for the purposes of declaration of dividend, make yearly disclosures to all the stock exchanges on which the shares of the company are listed, the changes, if any, in respect of the holdings of the persons referred to under sub-regulation (1) and also holdings of promoters or person(s) having control over the company as on 31st March."
Page 4 of 7 the noticee submitted that there is no complaint received from any investor since listing of the shares and has refuted the allegation. Regulation 8(3) of the SAST Regulations, 1997 is clear in its import and a bare reading of it reveals that all listed companies had to disclose their shareholdings to the stock exchange/s in which shares of such company are listed, within 30 days from the financial year ending March 31. The Noticee ought to have made the annual disclosures under Regulation 8(3) of the SAST Regulations, 1997.Therefore, I do not find any merit in the submissions of the Noticee. Since the noticee company failed to produce proof of filing necessary disclosures to the DSE, it can be concluded that the noticee has failed to make the necessary annual disclosures under Regulation 8(3) of the SAST Regulations, 1997 to DSE that too for a period of 13 years.
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Source: SecMarx — sebi:EAD-2/DSR/VVK/252/2014. 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.