sebi:ISD/GTL/AO/DRK-CS/EAD-3/374/40-13
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Consolidated penalty of Rs. 1,00,00,000 imposed on Golden Tobacco Ltd. for violation of Clause 35 of the Listing Agreement and Regulations 3(d), 4(2)(f) of PFUTP Regulations
Provisions invoked
- s. 15H
- s. 12
- s. 15J
- s. 23E
- s. 17
Regulations
- Reg. 2(c)
- Reg. 199
- Reg. 4(2)(f)
- Reg. 2
- Reg. 58
- Reg. 19
- Reg. 3(d)
Parties
- Golden Tobacco Ltd.
Holding
Golden Tobacco Ltd. violated Clause 35 of the Listing Agreement and Regulations 3(d) and 4(2)(f) of the PFUTP Regulations by disclosing only 5,28,000 encumbered shares instead of 32,93,000 encumbered shares for quarters ending March 31, 2009 to June 30, 2010, and a consolidated penalty of Rs. 1,00,00,000 was imposed under Section 23E of SCRA and Section 15HA of SEBI Act.
Full text
Page 2 of 14 of Rule 4 of the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 requiring to show cause as to why an inquiry should not be held and why penalty, if any, should not be imposed on the Noticee under Section 15HA of the SEBI Act and Section 23E of SCRA. In the said SCN, it was stated as follows:
Page 3 of 14 disclosure that only 5,28,000 shares were encumbered. The details of the shares encumbered by the promoters of GTL are as under:
Page 4 of 14 v. Further, as per regulation 3(d) of PFUTP Regulations no person shall directly or indirectly engage in any act which operates as a fraud. Fraud under regulation 2(c) of PFUTP Regulations has been defined as any act, expression, omission or concealment committed by a person or any other person with his connivance or by his agent while dealing in securities and shall also include an active concealment of a fact by a person having knowledge or belief of the fact. Noticee by the act of omission and concealment of the information regarding restrainment from selling, transferring or creating third party interest in any manner in the shares of GTL as per the arbitration order have committed fraud under regulation 3(d) of PFUTP Regulation.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:ISD/GTL/AO/DRK-CS/EAD-3/374/40-13. 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.