sebi:EAD-2/DSR/VVK/314/2014
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Facts / Headnote
Penalty imposed on the Noticee for violations of Takeover Regulations, 2011 and PIT Regulations, 1992
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 13(4)
- Reg. 12(1)
- Reg. 10
- Reg. 13(5)
- Reg. 30(1)
- Reg. 31(1)
- Reg. 31(3)
- Reg. 30(3)
Parties
- Mr. Sagar Pravin Shah
Holding
The Noticee was held liable for failing to disclose encumbered shares and invocation/release of encumbrance under the Takeover Regulations, 2011, failing to disclose changes in shareholding under the PIT Regulations, 1992, and violating the Model Code of Conduct by engaging in opposite transactions within six months. A total penalty of Rs. 35,00,000 was imposed (Rs. 20,00,000 under Section 15A(b) and Rs. 15,00,000 under Section 15HB of the SEBI Act, 1992).
Full text
Page 2 of 9 January,2012 to October,2012 ( hereinafter referred to as "the said Period") during the three quarters viz. March, 2012, June, 2012 and September, 2012. In view of the invocation of pledged shares, it was alleged that the shareholding of the noticee had reduced from 24.63% during the quarter ended June 30,2012 to 17.72% during the quarter ended September 30,2012 causing a decrease of 6.91% in the shareholding of the noticee .
Page 3 of 9 inquiry should not be held under Rule 4(3) of the said Rules and penalty be not imposed under Section 15A(b) and Section 15HB of the SEBI Act,1992 for the alleged violation of the provisions of aforesaid law. The noticee in response to the said SCN, vide its letter dated 8th May, 2014 sought time of three weeks to reply to the said SCN.
Page 4 of 9 c. If so, what should be the quantum of monetary penalty for such violations that can be imposed taking into consideration the factors mentioned in Section 15J of the SEBI Act,1992?
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Source: SecMarx — sebi:EAD-2/DSR/VVK/314/2014. 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.