sebi:EAD-5/SVKM/AA/AO/14/2015-16
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Facts / Headnote
Violation of Regulation 7(1) read with 7(2) of SAST Regulations, 1997 and Regulation 13(1) of PIT Regulations, 1992 established; violation of Regulation 7(1A) of SAST Regulations, 1997 not established; total penalty of Rs 5,00,000 imposed under Section 15A(b) of SEBI Act, 1992
Provisions invoked
- s. 15A
- s. 15
- s. 15I
- s. 15J
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 11
- Reg. 13(1)
- Reg. 13(3)
- Reg. 11(1)
- Reg. 13(5)
- Reg. 7(2)
- Reg. 35
- Reg. 35(2)
Parties
- Viaggio Entertainments Pvt. Ltd. (now known as Viaggio Traders Pvt. Ltd.)
Holding
The Noticee violated Regulation 7(1) read with Regulation 7(2) of SAST Regulations, 1997 and Regulation 13(1) of PIT Regulations, 1992 by failing to timely disclose its acquisition of 4,50,00,000 shares (14.06%) of Mahan Industries Ltd. on February 20, 2010, while violation of Regulation 7(1A) was not established, and a total monetary penalty of Rs 5,00,000 under Section 15A(b) was imposed.
Full text
Adjudication Order against Viaggio Entertainments Pvt. Ltd. in the matter of Mahan Industries Ltd. Page 2 of 16 shares of ` 1/- each to the preferential allottees of the convertible equity warrants. Therefore, on February 20, 2010 MIL had issued capital of 32,00,00,000 shares of ` 1/- each and outstanding convertible preferential warrants worth ` 5,15,00,000/-
Adjudication Order against Viaggio Entertainments Pvt. Ltd. in the matter of Mahan Industries Ltd. Page 3 of 16 transaction as stipulated by Regulation 13(1) of SEBI (Prohibition of Insider Trading) Regulations, 1992 (PIT Regulations, 1992). However, it was observed that the Noticee did not make the requisite disclosure as stipulated by the afore- mentioned regulation. Therefore, it was alleged that the Noticee violated the provisions of regulation 13(1) of PIT Regulations, 1992. APPOINTMENT OF ADJUDICATING OFFICER
Adjudication Order against Viaggio Entertainments Pvt. Ltd. in the matter of Mahan Industries Ltd. Page 4 of 16 7. Thereafter, Noticee was given an opportunity of personal hearing on December 19, 2014 vide notice dated December 04, 2014. The said notice, sent by the mode of hand delivery, was returned undelivered with the comment "Office locked". In terms of Rule 7 of the Adjudication Rules, copy of the said notice was served upon the noticee vide letter dated December 16, 2014 by affixing it on the last known address of the noticee. However, Noticee neither replied to the SCN nor attended the personal hearing.
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Source: SecMarx — sebi:EAD-5/SVKM/AA/AO/14/2015-16. 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.