sebi:EAD-5/BS/AO/145/2018-19
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Facts / Headnote
No violation found; matter disposed of with no penalty
Provisions invoked
- s. 15A
- s. 15
- s. 15I
Regulations
- Reg. 13(1)
- Reg. 13(3)
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29(3)
- Reg. 29(1)
- Reg. 29
- Reg. 29(4)
Parties
- The Karur Vysya Bank Ltd
Holding
The Adjudicating Officer found that the Noticee (The Karur Vysya Bank Ltd) did not violate Regulation 29(1) and 29(2) read with 29(3) of SAST Regulations, 2011, or Regulation 13(1) and 13(3) read with 13(5) of PIT Regulations, 1992, and no penalty was imposed.
Full text
Adjudication Order in the matter of Arvind Remedies Ltd Page 2 of 12 2. It was observed that ARL had taken a short term loan of Rs. 25 crores from the Noticee for the purpose of working capital requirements and 75,00,000 shares of ARL were pledged by the promoter – Arvindkumar B Shah, as collateral security for the loan. Subsequently, the Noticee has invoked pledge of 75,00,000 shares of ARL on various dates. It was alleged that due to invocation of pledge, the shareholding of the Noticee has increased to 40,29,500 shares, constituting 5.91% of the total share capital of ARL, on October 15, 2014. As the shareholding of the Noticee crossed 5% of the share capital of ARL, the Noticee was required to make requisite disclosure, within two working days, to the company under Regulation 13(1) of PIT Regulations, 1992, and to the company and stock exchanges under Regulation 29(1) read with 29(3) of SAST Regulations, 2011. However, no disclosures as stipulated under afore-mentioned Regulations were made by the Noticee. Accordingly, it was alleged that the Noticee has violated Regulation 13(1) of PIT Regulations, 1992 and Regulation 29(1) read with Regulation 29(3) of SAST Regulations, 2011.
Adjudication Order in the matter of Arvind Remedies Ltd Page 3 of 12 APPOINTMENT OF ADJUDICATING OFFICER 4. The undersigned was appointed as Adjudicating Officer (AO) vide order dated October 25, 2017 to inquire into and adjudge under Section 15A(b) of the SEBI Act, 1992, the aforesaid violations alleged to have been committed by the Noticee. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
Adjudication Order in the matter of Arvind Remedies Ltd Page 4 of 12 ARL and to its promoter Arvindkumar B Shah, invoked pledge of 75,00,000 shares at different dates and resorted to disposal of the shares through the market mechanism immediately after such invocation. iii. The transactions affected on different dates from 08.09.2014 to 02.02.2015 are as given below. Details of Invocation and Sale of Shares of M/s. Arvind Remedies Limited pledged to The Karur Vysya Bank Ltd Total share capital of ARL as per FY 2014-15 was 6,81,26,000 equity shares.* Date of Invocation Invocation of pledged shares Holding before transactions Date of sale No of shares sold Holding after transactions % of holding w.r.t. share capital of ARL 08.09.2014 10,29,500 0 08.09.2014 5,00,000 5,29,500 0.78
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Source: SecMarx — sebi:EAD-5/BS/AO/145/2018-19. 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.