sebi:ID-1/MIL/AO/DRK/DS/EAD-3/339/5/2013
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Facts / Headnote
Penalty imposed on the noticee for non-compliance
Provisions invoked
- s. 15
- s. 21
- s. 15H
- s. 15J
- s. 23A
- s. 23J
- s. 23
Regulations
- Reg. 12(2)
Parties
- Minal Industries Limited
Holding
The noticee, Minal Industries Limited, was held liable for violating Clause 19(b) of the Listing Agreement read with Section 21 of the SC(R)A and Regulation 12(2) read with Clause 2.1 of Schedule II of the PIT Regulations by failing to simultaneously disseminate information about the bonus issue proposal to the Stock Exchanges. A consolidated penalty of Rs. 2,00,000 was imposed (Rs. 1,00,000 under Section 23A of the SC(R)A and Rs. 1,00,000 under Section 15HB of the SEBI Act).
Full text
Page 2 of 11 referred to as 'SC(R)Rules') to inquire into and adjudge under Section 15HB of the SEBI Act and Section 23A of the SC(R)A for the alleged violation of the provisions of Section 21 of the SC(R)A read with Clause 19(b) of the Listing Agreement and Regulations 12(2) read with Clause 2.1 of Schedule II of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as 'PIT Regulations'). SHOW CAUSE NOTICE, HEARING AND REPLY
Page 3 of 11 6. The noticee acknowledged receipt of the said SCN. Vide letter dated October 29, 2012, the noticee sought an extension of 14 days to file the reply to the SCN.
Page 4 of 11 proposal for declaration of bonus issue is communicated on 6th July, 2012 i.e. at least two working days in advance as per clause 19(a) of the Listing Agreement. The company is complying the conditions of Listing Agreement but on account of ignorance of Clause 19(b) of Listing Agreement, the intimation was sent to BSE as per the clause 19(a) of Listing Agreement. d) We have given the price sensitive information to the Stock Exchange and have not made any concealment of such information at any point of time. The Stock Exchange or any other concerned entity has not raised any issue about violation or non-compliance of this provision of the applicable law. We have a good track record of compliance of all applicable legal provisions and in this matter also we have complied with the law in letter and spirit. e) The company has not violated Regulations 12(2) read with Clause 2.1 of Schedule II of the PIT Regulations, the company has informed to the stock exchange regarding declaration of bonus issue of shares on 6th July, 2010 which was confirmed by the board on 9th July, 2010. f) The promoters of the company have not traded in the shares of the company during the said period of delay. None of the officers of the company, except Managing Director, holds the shares in the company and none of them have traded in the shares of the company during the said period of delay. g) The shareholding of the promoters and promoter group has not changed. In other words, they have not
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Source: SecMarx — sebi:ID-1/MIL/AO/DRK/DS/EAD-3/339/5/2013. 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.