sebi:ISD/MGPL/FDIL/AO/DRK/AKS/EAD-3/296/62-11
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Facts / Headnote
Penalty imposed on noticee for violations of PIT Regulations and Takeover Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 12
- s. 15J
Regulations
- Reg. 7
- Reg. 13
- Reg. 58
Parties
- Manmohan Gems Pvt. Ltd.
Holding
The noticee violated Regulation 13 (3) read with 13 (5) and Regulation 13 (1) of PIT Regulations and Regulations 7 (1) read with 7 (2) of Takeover Regulations by failing to make required disclosures regarding transfer and subsequent re-acquisition of 10,00,000 shares of FDIL, as the shares were not validly pledged. A consolidated penalty of Rs. 3,00,000 was imposed.
Full text
Page 2 of 13 APPOINTMENT OF ADJUDICATING OFFICER 3. I was appointed as the Adjudicating Officer and the same was communicated vide proceedings of the Whole Time Member appointing Adjudicating Officer dated 09.05.2011 under Section 15 I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’) read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) to inquire into and adjudge under Section 15A (b) of the SEBI Act, the violation of Regulations 13 (1), 13 (3) read with 13 (5) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as ‘PIT Regulations’) and Regulations 7 (1) read with 7 (2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as ‘Takeover Regulations’) alleged to have been committed by Manmohan Gems Pvt. Ltd. (hereinafter referred to as ‘noticee’).
Page 3 of 13 a. From the investigation report it is observed that noticee had offloaded 10,00,000 shares (6% of the paid up share capital of the company) to RGPL on 31.10.2009. After the transfer of the shares, noticee’s holding in FDIL had become zero. It is alleged that no disclosure has been made by the noticee for such transfer as required under PIT Regulations to the company which has led to the violation of Regulation 13 (3) read with Regulation 13 (5) of PIT Regulations.
Page 4 of 13 7. A final hearing notice dated 26.08.2011 was sent to the noticee by “Registered Post Acknowledgement Due” granting it time till 05.09.2011 to submit a detailed reply to the SCN and attend the hearing on 08.09.2011 at SEBI Bhavan, Mumbai. Noticee’s authorized representative, Shri Joby Mathew, Advocate vide his letter dated 07.09.2011 requested for another adjournment of the hearing as he was in the process of preparing a reply.
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Source: SecMarx — sebi:ISD/MGPL/FDIL/AO/DRK/AKS/EAD-3/296/62-11. 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.