sebi:ID7/TFCL/AO/DRK-DS/EAD3-516/60-2014
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Facts / Headnote
Penalty imposed on noticee for violation of Regulation 7(1A) of Takeover Regulations; allegation under Regulation 13(3) of PIT Regulations not established
Provisions invoked
- s. 15A
- s. 15
- s. 370
- s. 15J
Regulations
- Reg. 7
- Reg. 11
- Reg. 13(3)
- Reg. 11(1)
- Reg. 2(e)(2)(i)
Parties
- Twenty First Century (India) Limited
Holding
The noticee violated Regulation 7(1A) of the Takeover Regulations by failing to disclose sale of more than 2% of SVIL's share capital while being a PAC with the promoters, and a monetary penalty of Rs. 20,00,000 was imposed. The allegation of violating Regulation 13(3) of the PIT Regulations was not established as the noticee had made the required disclosures with negligible delay.
Full text
Page 2 of 11 Regulations") and Regulation 13(3) of the SEBI (Prohibition of Insider Trading), Regulations, 1992 (hereinafter referred to as "PIT Regulations"), alleged to have been committed by Twenty First Century (India) Ltd. (hereinafter referred to as 'the noticee/ Twenty First/ it') by failing to disclose the sale of shares of SVIL. The said appointment was communicated vide proceedings of the Whole Time Member appointing Adjudicating Officer dated December 10, 2008.
Page 3 of 11 6. The aforesaid SCN sent by Registered Post Acknowledgment Due (RPAD) was returned undelivered by postal authorities with a remark “left”. Therefore, a copy of the SCN was sent to the stock broker of the noticee, Prakash Nahata & Co. for serving the same on the noticee. However, the said consignment was returned undelivered by postal authorities with a remark “Not Claimed”. In order to ascertain the current address of the noticee, National Securities Depository Limited (NSDL) was requested vide email dated November 13, 2009 to provide the address available in its record. NSDL vide letter dated November 19, 2009 submitted that all four DP Accounts of the noticee with them are closed, but all of them had same/similar address as that mentioned in the SCN.
Page 4 of 11 10. However, it is noted from the records that the noticee submitted its consent application on March 10, 2010. While the consent application was pending, a personal hearing notice dated June 09, 2010 was sent to the noticee advising it to submit reply to the SCN on or before June 21,2010 and also attend the hearing on June 29, 2010 at SEBI Bhavan, Mumbai. While granting opportunity of personal hearing, noticee was informed that adjudication proceedings will be continued in the matter except passing of the final order. The aforesaid hearing notice sent by Registered Post Acknowledgement Due (RPAD) and the proof of service of the same is on record.
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Source: SecMarx — sebi:ID7/TFCL/AO/DRK-DS/EAD3-516/60-2014. 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.