sebi:ID-7/GBL/RIL/AO/DRK/BM/EAD-3/337/3-2013
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Facts / Headnote
Liability found ex parte; consolidated monetary penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 27
Regulations
- Reg. 13
- Reg. 13(3)
- Reg. 8
- Reg. 8(2)
Parties
- Raj Investments Limited
Holding
Raj Investments Limited violated Regulation 13(3) of the PIT Regulations and Regulation 8(2) of the Takeover Regulations by failing to disclose reduction of its shareholding in GBL from 30.87% to 19%, and a consolidated monetary penalty of Rs. 4,00,000 under Section 15A(b) of the SEBI Act was imposed ex parte.
Full text
Page 2 of 6 Show Cause Notice, Reply and Hearing 3. A show cause notice (hereinafter referred to as the SCN) dated October 30, 2009 was issued under Rule 4 (1) of the Adjudication Rules, advising the noticee to show cause as to why an inquiry should not be held against it and penalty should not be imposed under Section 15A (b) of the SEBI Act for the aforesaid violations. The SCN alleged that the noticee failed to disclose the reduction in its shareholding in GBL from 2,30,59,317 shares constituting 30.87% as on quarter ended March 2005 to 1,41,92,187 shares constituting 19% as on quarter ended September 2005 and thereby violated Regulation 13 (3) of the PIT Regulations and Regulation 8 (2) of the Takeover Regulations. The SCN was sent by Registered Post to the noticee at the address mentioned above and also at an alternate address namely 4F, Wing Hing House, 36, Wyndham Street, Central, Hong Kong. The SCN sent at the address in Hong Kong came back undelivered with an observation "moved". However, no reply is received from the noticee.
Page 3 of 6 Registered Post to the noticee at the address in British Virgin Islands and submitted the proof of despatch. However, the noticee neither appeared for the personal hearing nor responded to the said hearing notices.
Page 4 of 6 constituting 30.87% as on quarter ended March 2005 to 1,41,92,187 shares constituting 19% as on quarter ended September 2005 i.e a reduction of 11.87%. The reduction in shareholding of the noticee is also confirmed from the disclosures made by GBL, available in the website of Bombay Stock Exchange Limited.
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Source: SecMarx — sebi:ID-7/GBL/RIL/AO/DRK/BM/EAD-3/337/3-2013. 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.