sebi:ISD/SICOM/AO/DRK-CS/EAD-3/544/88-14
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Facts / Headnote
Violation established; penalty of Rs 5,00,000 imposed under Section 15A(b) of the SEBI Act, 1992
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 4A
Regulations
- Reg. 4
- Reg. 13
- Reg. 13(1)
- Reg. 29(1)
- Reg. 29
- Reg. 1
- Reg. 2(c)
- Reg. 2(e)
- Reg. 29(3)
- Reg. 29(4)
- Reg. 201
- Reg. 2(h)
Parties
- SICOM Ltd.
Holding
The Noticee violated Regulations 29(1) read with 29(3) of SAST Regulations and Regulation 13(1) of PIT Regulations by failing to disclose within two working days its acquisition of 37,53,200 shares constituting 28.59% of Vas Infrastructure Ltd. upon invocation of pledge on February 23, 2012, and a penalty of Rs 5,00,000 under Section 15A(b) of the SEBI Act was imposed.
Full text
Page 2 of 8 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 3. A Show Cause Notice No. A&E/EAD-3/DK-BM/2189/2013 dated August 29, 2013 (hereinafter referred to as "SCN") was sent to the Noticee by “RPAD” in terms of the provisions 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 against the Noticee and why penalty, if any, should not be imposed on the Noticee under Section 15A(b) of the SEBI Act. In the said SCN, it was alleged that: a. the entities forming part of the promoter group of VIL, namely Vasparr Trading Private Limited, Pushpanjali Drums Private Limited, Precision Containeurs Limited, Yashraj Containeurs Limited and Vasparr Shelters Limited had pledged their shares with the Noticee in tranches during April 2010 to January 2011. 37,53,200 shares pledged with the Noticee were observed to have been invoked by the Noticee on February 23, 2012. It is further observed that Noticee's name was not appearing in the list of persons holding more than 1% of the share capital of VIL as on the quarter ending December 2011. However, shareholding of the Noticee in VIL as on the quarter ending March 2012 was 37,53,200 shares constituting 28.59% of the share capital.
Page 3 of 8 b. We are not bound by Disclosure of interest or holding in listed companies by certain persons-initial disclosure- u/s 13(1) of PIT Regulations as the shares were invoked since the company failed to make payments to us.
Page 4 of 8 CONSIDERATION OF ISSUES, EVIDENCE AND FINDINGS 7. I have taken into consideration the facts and circumstances of the case and the material made available on record. Before moving forward, it would be pertinent to refer to the following provisions, which reads as under-
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Source: SecMarx — sebi:ISD/SICOM/AO/DRK-CS/EAD-3/544/88-14. 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.