sebi:EAD-9/VKV/GSS/2020-21/9244-9245

SEBI · SEBI · 2020-07-17 · Vijayant Kumar Verma, Adjudicating Officer

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Facts / Headnote

Noticee no.1 held to have violated regulation 13(4) of PIT Regulations and regulation 29(1) r/w 29(2) of SAST Regulations, Noticee no.2 held to have violated regulation 13(6) of PIT Regulations, and joint and several penalty imposed under Section 15A(b).

Provisions invoked

Regulations

Parties

Holding

Noticee no.1 violated regulation 13(4) of PIT Regulations, 1992 and regulation 29(1) r/w 29(2) of SAST Regulations, 2011 and Noticee no.2 violated regulation 13(6) of PIT Regulations, 1992, attracting a joint and several monetary penalty of Rs. 2,00,000 under Section 15A(b) of the SEBI Act.

Full text

Adjudication Order in the matter of Alang Industrial Gases Ltd. Page 2 of 15 b. The Target company failed to file disclosure with respect to information received under regulation 13 (1) of SEBI (PIT) Regulations 1992 by Mr. Dilip Seth which was in violation of regulation 13 (6) of SEBI (PIT) Regulations 1992. APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order in the matter of Alang Industrial Gases Ltd. Page 3 of 15 8. Submissions of the Noticee no. 1 and Noticee no. 2 are summarized below; ➢ Noticee no. 1 • Regarding violation of regulation 13(4) of PIT regulations, it is submitted that by reading PIT Regulations, I thought that I fall under regulation 13(1) and 13(3) SEBI (PIT) Regulations 1992 and had submitted due disclosures to the company in this regard under regulation 13(1) and 13(3) of SEBI (PIT) Regulations 1992. • “I received 225000 equity shares as gift (interse transfer) from my sister-in-law Purvi Mehta on June 05, 2012 and disclosure under regulation 29(1) of SAST regulation 2011 was made to both Ahmedabad Stock Exchange and the Target Company on June 07, 2012 and sent through courier to Bombay stock Exchange on June 06, 2012.” • “I received 225000 equity shares as gift (interse transfer) from my brother-in-law Girish Mehta on June 23, 2012 and disclosure under regulation 29(2) of SAST regulation 2011 was made to both Ahmedabad Stock Exchange and the Target Company on June 25, 2012 and sent through courier to Bombay stock Exchange on June 24, 2012.” • I would like to submit that since registered office of the company Alang is situated in Ahmedabad and I was also in Ahmedabad in most of the time in the month of June 2012. So, I submitted disclosures to Ahmedabad Stock Exchange and the Target Company and sent through courier to Bombay stock Exchange. • The same was done due to wrong interpretation o

Adjudication Order in the matter of Alang Industrial Gases Ltd. Page 4 of 15 • We submitted disclosure under regulation 13(6) to Ahmedabad Stock Exchange and sent through courier to Bombay stock Exchange. • Since filing are more than eight years old, we did not find acknowledgments of disclosures submitted to Ahmedabad Stock Exchange. However, we assure that no such mistake shall occur in future. • The company is incurring loss from past several years and imposition of even small amount of penalty will be very hard on us. Thus, lenient view may be taken.

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Source: SecMarx — sebi:EAD-9/VKV/GSS/2020-21/9244-9245. 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.