sebi:EAD-9/AO/SM/38/2018-19
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Facts / Headnote
Violation of PIT Regulations established; monetary penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15J
Regulations
- Reg. 7(1)
- Reg. 199
- Reg. 7
- Reg. 13(3)
- Reg. 13(5)
- Reg. 35(2)
Parties
- Netedge Technosoft Private Limited
Holding
The Noticee was held to have complied with Regulation 7(1) of SAST 1997 but to have violated Regulation 13(3) read with Regulation 13(5) of PIT 1992. A monetary penalty of Rs 1,00,000 under Section 15A(b) of the SEBI Act was imposed on the Noticee.
Full text
In the matter of Alchemist Realty Ltd Page 2 of 10 4. In this order wherever SAST 1997 is mentioned it should be referred to as SAST 1997 read with Regulation 35(2) of (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
In the matter of Alchemist Realty Ltd Page 3 of 10 8. Allegations in the SCN broadly are as follows: 8.1. It was observed from the corporate announcement of ARL dated February 8, 2007, NTL was allotted 2, 46,000 shares by way of preferential allotment. As on October 17, 2007, NTL acquired 1, 91,645 (2.72%) shares of ARL. With this the total shareholding of NTL as on October 17, 2007 was 4,37,645 shares (6.21%) of the share capital of ARL and therefore required to make disclosures in terms of SAST 1997 and PIT 1992.. it was alleged that in the following instances noticee has not made disclosure as per the Regulation mentioned therein: Date of Acquisition / sale No. of shares held (%) allegation 17/10/2007 1, 91,645 (2.72% additional acquisition) (total shares held: 4, 37,645 (6.21%)) Disclosure made under Reg.7 (1) of SEBI (SAST), 1997.
In the matter of Alchemist Realty Ltd Page 4 of 10 10. Noticee vide its letter dated July 22,2017 submitted its reply and interalia stated the following: 10.1. During the Financial Year 2007-08 the Company M / s Alchemist Realty Limited had issued Bonus Shares in the Ratio of 1:1 and the same was informed to relevant stock exchange. During the quarter ending June 2008 the Company M / s Alchemist Realty Limited has exercised stock split option in the Ratio of 1:5. The enhance shareholding of our Company M/s Netedge Technosoft Private Limited for M / s Alchemist Realty Limited is because of Bonus Shares and thereafter their entitlement of extra shares due to stock split. 10.2. Our Company has made all disclosures as and when it exceeds in prescribed limits in every single transaction as required Regulation 7(1) of SEBI (SAST)
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Source: SecMarx — sebi:EAD-9/AO/SM/38/2018-19. 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.