sebi:EAD-7/BJD/NJMR/68-80/2018-19
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Facts / Headnote
Violation of Regulation 11(1) read with Regulation 14(1) of SEBI (SAST) Regulations, 1997 read with Regulation 35 of SEBI (SAST) Regulations, 2011 established against all Noticees except Noticee 8; proceedings against deceased Noticee 8 abated; joint and several penalty of Rs 25,00,000 imposed under Section 15H(ii) of SEBI Act.
Provisions invoked
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15J
Regulations
- Reg. 11
- Reg. 14
- Reg. 10
- Reg. 8(2)
- Reg. 30(2)
- Reg. 35
Holding
The promoter Noticees violated Regulation 11(1) read with Regulation 14(1) of SAST Regulations, 1997 read with Regulation 35 of SAST Regulations, 2011 by failing to make a public announcement after the promoter group holding increased from 70.52% to 77.47% on acquisition of 3,45,000 shares (6.95%). A penalty of Rs 25,00,000 jointly and severally was imposed under Section 15H(ii), while proceedings against deceased Noticee 8 abated.
Full text
Adjudication Order in the matter of Linkhouse Industries Ltd., Page 2 of 17 In the matter of Linkhouse Industries Ltd., BACKGROUND 1. Securities and Exchange Board of India (hereinafter referred to as ‘SEBI’) conducted an investigation in the scrip of Linkhouse Industries Ltd., (hereinafter referred to as “Linkhouse” / “Company”) during the period June 18, 2004 to December 31, 2008 ( (hereinafter to be referred to as “investigation period”) to ascertain any possible violation of the provisions of SEBI Act and SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 by certain connected entities. During the investigation, it was inter-alia observed by SEBI that the promoters of Linkhouse viz., Anilkumar Nandkumar Harchandani, Nandkumar Khattumal Harchandani, Poonamdevi Nandkumar Harchandani, Riteshkumar Nandkumar Harchandani, Vijaykumar Nandkumar Harchandani, Archana Deepak Wani, Nandkumar Khattumal Harchandani HUF, Savitridevi Khattumal harchandani, Poonam Resorts Ltd., Kumar Hotel Ltd., Kardhar Finance Pvt., Ltd., Lire Investment Pvt., Ltd., and N Kumar Housing & Infrastructure Pvt., Ltd., (hereinafter referred to as “Noticees”) together with Persons Acting in Concert (PACs) upon crossing the threshold limit of 75% of shareholding in the scrip of Linkhouse had failed to make public announcement and thereby violated the provisions of Regulation 11 (1) read with Regulation 14 (1) of SEBI (Substantial Acquisition of Shares & Ta
Adjudication Order in the matter of Linkhouse Industries Ltd., Page 3 of 17 SEBI Act for the alleged violation of the provisions of SEBI (SAST) Regulations, by the Noticees.
Adjudication Order in the matter of Linkhouse Industries Ltd., Page 4 of 17 5. I note that there was no reply filed by the Noticees to the charges alleged in the SCN. Therefore, in the interest of natural justice and in terms of the provisions of Rule 4 (4) of Adjudicating Rules, an opportunity of personal hearing was granted to all the Noticees, which was scheduled on May 10, 2018. The Noticees (except Noticee 10 i.e, Kumar Hotel Ltd.,) vide their respective letters dated May 2 & 4, 2018 had submitted their replies to the SCN. The Noticees requested to consider their submissions as their response to the notice of hearing.
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Source: SecMarx — sebi:EAD-7/BJD/NJMR/68-80/2018-19. 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.