sebi:EAD-5/SVKM/DS/AO/76-81/2017-18
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Facts / Headnote
Penalty of Rs. 2,00,000 each imposed on six noticees for disclosure violations
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15F
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 13
- Reg. 13(4)
- Reg. 13(3)
- Reg. 7(3)
- Reg. 13(6)
- Reg. 13(5)
- Reg. 7(2)
- Reg. 35
- Reg. 3(4)
Parties
- Shri Sanjay Dhingra
- Shri Gulshan Dhingra
- Shri Naresh Dhingra
- Shri Krishan Dhingra
- Ms. Kanika Dhingra
- Kwality Ltd.
Holding
Noticee No.1 violated Regulation 13(4) of PIT Regulations, Noticee Nos.2 to 4 violated Regulation 13(3) of PIT Regulations, Noticee No.5 violated Regulation 7(1) read with 7(2) of SAST Regulations, 1997 and Noticee No.6 violated Regulation 7(3) of SAST Regulations, 1997, and each was penalized Rs.2,00,000 under Section 15A(b) of SEBI Act.
Full text
Adjudication Order in the matter of Kwality Ltd. Page 2 of 14 I. Regulation 13(3), (4) and (4A) read with Regulation 13(5) of SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as PIT Regulations) by Shri Sanjay Dhingra and Shri Gulshan Dhingra (hereinafter referred to as Noticee Nos. 1 and 2);
Adjudication Order in the matter of Kwality Ltd. Page 3 of 14 Naresh Dhingra 50,000 0.02 50,000 0.02 Krishan Dhingra 45,000 0.02 45,000 0.02 Kanika Dhingra 5,24,94,000 25.84 5,24,94,000 25.84 Total 15,23,40,714 74.98 15,23,40,714 74.98
Adjudication Order in the matter of Kwality Ltd. Page 4 of 14 iv. The disclosure under Regulation 13(4) was applicable to an Officer or Director of the company. As Noticee No. 2 resigned from the post of director of the company on 24.11.2010, the said regulation is not applicable to him. v. Regulation 13(4A) of PIT Regulations came into effect on 16.08.2011 and was not applicable on the transaction which is dated 29.07.2011. vi. Disclosure under Regulation 7(1) was made to the company and stock exchanges vide letter dated 22.07.2011. vii. The Company had received the disclosure from Ms. Kanika Dhingra under regulation 7(1) and 7(2) of SEBI SAST Regulations, 1997 on 22nd July, 2011 which was in turn sent to BSE and NSE under Regulation 7(3) of the SAST Regulations, 1997 on 23rd July, 2011. viii. The Company had received the disclosures from Mr. Naresh Dhingra, Mr. Sanjay Dhingra, Mr. Gulshan Dhingra and Mr. Krishan Dhingra dated 22nd July, 2011, 30th July, 2011, 30th July, 2011 and 22nd July, 2011 respectively under Regulation 13(3) and 13(4) of PIT Regulations, 1992, which in turn sent to BSE and NSE under Regulation 13(6) of PIT Regulations on 23rd July, 2011 and 01st August, 2011
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Source: SecMarx — sebi:EAD-5/SVKM/DS/AO/76-81/2017-18. 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.