sebi:EAD-7/BJD/NJMR/2018-19/1787

SEBI · SEBI · 2009-10-29 · B J Dilip, Adjudicating Officer

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Facts / Headnote

Violation of Clause 35 of Listing Agreement established; monetary penalty imposed under Section 23H of SCRA

Provisions invoked

Regulations

Parties

Holding

The Noticee (DSIL) violated Clause 35 of the Listing Agreement by filing incorrect shareholding patterns from March 2002 to September 2009, failing to include Man-Made Fibres Private Ltd. under the promoter category. The violation attracts monetary penalty under Section 23H of SCRA (not Section 23A(a)), as the Noticee had furnished information which was subsequently found to be wrong.

Full text

Adjudication Order in respect of Dalal Street Investments Ltd., Page 2 of 23 3. It was observed that the Company vide its letter dated October 29, 2009 addressed to BSE had submitted revised shareholding pattern from March 31, 2002 to September 30, 2009 by incorporating the shareholding of four companies out of the five companies stated above, under promoter category. However, it was observed that even in the revised shareholding pattern submitted to BSE, in respect of the shareholding of Man-Made Fibres Pvt., which was holding 18.48% of share capital, it was not shown in the promoter category by DSIL.

Adjudication Order in respect of Dalal Street Investments Ltd., Page 3 of 23 some more time to submit its reply to the charges alleged in the SCN. Vide email dated March 21, 2018, the Noticee was informed of extension of time till April 2, 2018 to submit its reply. The Noticee vide letter dated March 26, 2018 sought time till April 15, 2018, which was acceded to and a communication in this regard was sent to the Noticee by email on March 28, 2018.

Adjudication Order in respect of Dalal Street Investments Ltd., Page 4 of 23 Noticee was given an opportunity to file its reply by November 12, 2018, besides being provided with an opportunity of personal hearing on November 15, 2018. The Noticee vide letter dated November 5, 2018 sought extension of time till November 30, 2018 to furnish its reply and reschedule personal hearing any time after December 10, 2018. Vide email dated November 5, 2018, the Noticee was informed of non-consideration of its requests for extension of time for reply and personal hearing. Further, the Noticee vide letter dated November 6, 2018 once again sought extension of time as sought by it vide its letter dated November 5, 2018, which was acceded to and a communication in this regard was sent to the Noticee through email on November 12, 2018.

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Source: SecMarx — sebi:EAD-7/BJD/NJMR/2018-19/1787. 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.