sebi:EAD-9/SM/96-98/2018-19

SEBI · SEBI · 2015-07-03 · Sahil Malik, Adjudicating Officer

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Facts / Headnote

Violations established; monetary penalty imposed under Section 15A(b) of SEBI Act, 1992

Provisions invoked

• s. 15A
• s. 15
• s. 15J

Regulations

• Reg. 13(4)
• Reg. 13(3)
• Reg. 2
• Reg. 13(5)

Parties

• Omkar Overseas Ltd
• Champalal Gopiram Agarwal
• Shankarlal Gopiram Agarwal
• Subhashchandra Omkarmal Agarwal

Holding

Champalal, Shankarlal and Subhashchandra violated Regulation 13(3) and/or Regulation 13(4) read with Regulation 13(5) of the PIT Regulations, 1992 by non-disclosure or delayed disclosure of changes in shareholding and are liable to monetary penalty under Section 15A(b) of the SEBI Act, 1992.

Full text

In the matter of M/s Omkar Overseas Ltd Page 2 of 10 Show Cause Notice, Reply and Personal Hearing: 5. A common Show Cause Notice dated July 03, 2015 (hereinafter referred to as ‘SCN”) was served on Noticees in terms of Rule 4 of AO Rules read with Section 15 (I) of SEBI Act, calling upon the Noticees to show cause as to why an inquiry should not be held against them and penalty should be not imposed under Section 15A(b) of SEBI Act, 1992 on Noticees for the alleged provisions of law.

In the matter of M/s Omkar Overseas Ltd Page 3 of 10 Regulation 13(5) of PIT Regulations within 2 working days as the total sale was more than 25,000 shares/more than Rs. 500000 in value. However, it was alleged that Subhashandra made delayed disclosure in this regard.

In the matter of M/s Omkar Overseas Ltd Page 4 of 10 14.5. As soon as the said Noticees were being made aware about the disclosures to be filed, they immediately filed the same with the stock exchange and the OOL. Failure to make disclosures in required time frame has not resulted in any undue benefit/ profit to the said Noticees. Failure to make disclosures in required time frame has not caused any loss to the investors. make disclosure, then the Noticees would not have made even delayed disclosures. 14.6. Further, with respect to non-disclosure by Mr. Champalal Agarwal for the transaction of 2,25,000 shares of OOL on 23-11-2009 is concerned, it is submitted that the said transaction was by way of gift executed by Mr. Ronit Agarwal in favour of Mr. Champalal Agarwal. Further, the transaction of 2,25,000 shares of OOL was among the promoters i.e. both Mr. Ronit Agarwal and Mr. Champalal Agarwal belonged to the promoter group of OOL. Therefore, the promoters shareholding of OOL ultimately remained the same. Further, admittedly, Mr. Ronit Agarwal had made the required disclosures under SEBI (SAST) and SEBI (PIT) Regulations and which is also accepted by SEBI 14.7. It is submitted on behalf of the Noticees that penalty should not be levied merely because there is default. In this regard, we would like to cite SAT decision in Chandrakant Gandhi Stock Broker P. Ltd. Vs. Securities and Exchange Board of India [2000 (37) CLA 238] SAT. Further, we would like to cite Tribunal's view i

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