sebi:EAD-5/BS/AO/144/2017-18
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Facts / Headnote
Violation of Regulations 3(i) and 4 of PIT Regulations, 1992 held not established; disclosure lapses noted but no penalty imposed under Sections 15G and 15A(b) of SEBI Act, 1992 and matter disposed without penalty
Provisions invoked
- s. 15
- s. 15I
- s. 15G
- s. 114
Regulations
- Reg. 7
- Reg. 11
- Reg. 3
- Reg. 199
- Reg. 13(1)
- Reg. 13(3)
- Reg. 3(i)
- Reg. 2
- Reg. 13(6)
- Reg. 7(1)
- Reg. 13(5)
- Reg. 7(2)
- Reg. 18
- Reg. 35
Parties
- Vasparr Shelter Ltd
Holding
The alleged violation of Regulations 3(i) and 4 of PIT Regulations, 1992 by sale of 3,10,000 shares on February 01, 2010 while in possession of UPSI was held not established, and the delayed/missing disclosures under Regulation 7(1A) of SAST Regulations, 1997 and Regulation 13(3) read with 13(5) of PIT Regulations, 1992 were condoned with a lenient view with no penalty imposed.
Full text
Adjudication Order in respect of Vasparr Shelter Ltd in the matter of Vas Infrastructure Ltd Page 2 of 18 was Rs 0.10 crore as compared to loss of Rs 0.17 crore for the quarter ending September, 2009. It was observed that the Noticee had sold off 3,10,000 shares (2.48%) of VIL on February 01, 2010 i.e. prior to the aforementioned financial results being made public. It is alleged that the Noticee was an ‘insider’ under the PIT Regulations, 1992, and by selling 3,10,000 shares on February 01, 2010 while in possession of unpublished price sensitive information (UPSI) had violated Regulation 3(i) and 4 of PIT Regulations, 1992.
Adjudication Order in respect of Vasparr Shelter Ltd in the matter of Vas Infrastructure Ltd Page 3 of 18 appointed as the Adjudicating Officer vide order dated September 15, 2017 in the place of Shri S. V. Krishnamohan in the present matter.
Adjudication Order in respect of Vasparr Shelter Ltd in the matter of Vas Infrastructure Ltd Page 4 of 18 she did not trade on the basis of unpublished price sensitive information and that he / she traded on some other basis, he / she cannot be said to have violated the provisions of regulation 3 of the regulations". iv. Therefore, clearly, if Vasparr Shelter Ltd. (RVL Ltd.) can establish that its trades were not on the basis of UPSI, but on some other basis, it cannot be held to have violated Regulation 3 of the 1992 PIT Regulations. This was also reaffirmed by the Hon'ble SAT in Manoj Gaur v. SEBI (Appeal No. 64 of 2012).
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Source: SecMarx — sebi:EAD-5/BS/AO/144/2017-18. 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.