sebi:ISD/IPCL/MHM-SMM/AO/DRK-CS/EAD-3/356/22-13
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Alleged violation of regulation 3 of PIT Regulations not established; matter disposed of
Provisions invoked
- s. 15G
Regulations
- Reg. 3
- Reg. 2
- Reg. 2(c)
- Reg. 2(e)
- Reg. 2(h)
- Reg. 2c
Parties
- Shri. Manoj H. Modi
- Smt. Smita M. Modi
Holding
The alleged violation of regulation 3 of the PIT Regulations by Manoj H. Modi and Smita M. Modi was not established and the matter was disposed of. The Noticees were not found to be 'insiders' as alleged in the Show Cause Notice.
Full text
Page 2 of 18 2. It was observed from the above table that share price of IPCL had more or less moved in sync with the sensex movement as observed on March 5, 2007 the scrip declined by 8.13% on BSE when the sensex declined by 3.79%. It is pertinent to add that the price of the scrip declined even after the announcement of the interim dividend by IPCL. However, in a divergence from the index, the scrip witnessed substantial price gain on March 8, 2007 and March 9, 2007 subsequent to the important announcement of amalgamation of IPCL with Reliance Industries Ltd. (hereinafter referred to as “RIL”).
Page 3 of 18 Date/ Time Announcement 02/03/2007 14:28 To consider, inter alia, declaration of Interim Dividend on equity shares of the Company. The Company further informed the Exchange that the Company has fixed March 22, 2007 as 'Record Date' to determine the equity shareholders who would be eligible to receive the Interim Dividend if declared by the Board at its meeting scheduled on March 10, 2007. In the event of the Board deciding to pay
Page 4 of 18 i) MHM has admitted that he acts as a consultant to Mr. Mukesh Ambani Chairman of IPCL (hereinafter referred to as "MA-IPCL") and also stated that he is currently on the board of Reliance Retail Ltd (hereinafter referred to as "RRL") and during the pertinent period was on the board of Reliance Petroleum Ltd. (hereinafter referred to as "RPL"), both group companies of RIL. By virtue of his position involving a professional and business relationship between himself and MA, suggesting the close proximity of MHM with MA and his group of industries, MHM is a connected person in terms of regulation 2 (c) (ii) of PIT Regulations and therefore he is an 'insider' in terms of provisions of Regulation 2 (e) of PIT Regulations.
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/IPCL/MHM-SMM/AO/DRK-CS/EAD-3/356/22-13. 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.