sebi:ISD/SICPA/AO/DRK-DS/EAD3-545/89-2014
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Facts / Headnote
Penalty imposed on the noticee for failure to make disclosures under Regulation 13(3) read with Regulation 13(5) of the PIT Regulations.
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 13
- Reg. 13(3)
- Reg. 13(6)
- Reg. 13(5)
Parties
- SICPA (India) Ltd. (presently known as SICPA India Pvt. Ltd.)
Holding
The noticee failed to comply with Regulation 13(3) read with Regulation 13(5) of the PIT Regulations by not making disclosures in Form C within two working days of sale of shares exceeding 2% of total shareholding, and a penalty of Rs. 5,00,000 was imposed under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 9 SHOW CAUSE NOTICE, HEARING AND REPLY 3. A Show Cause Notice no. A&E/EAD-3/DRK-DS/2479/2014 dated January 22, 2014 (hereinafter referred to as 'SCN') was served on the noticee in terms of the provisions of Rule 4 of the Rules, requiring the noticee 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 it under Section 15A(b) of the SEBI Act for the alleged violation of the provision of Regulation 13(3) read with Regulation 13(5) of the PIT Regulations.
Page 3 of 9 5. It was alleged that the noticee did not make any disclosure with respect to the sale of 18,74,000 shares.
Page 4 of 9 Asst. Legal & Secretarial, Brushman, the Depository Participant – Abhipra Capital Ltd., BSE and DSE (in compliance of Regulation 7 of the SAST Regulations, 1997.) f. Inspite of being a shareholder of Brushman, we never received any notices for general meeting, annual report etc. for which we protested. g. In view of the continued default and ignoring the aforesaid correspondences, another letter dated 13.03.2010 was issued to the Pledgors I.e. Mr. Kapil Kumar and Mrs. Raj Rani as well as copied to Mr. Kapil Kumar, MD of Brushman giving prior intimation for sale of pledged shares. h. SICPA is a closely held unlisted company. Although there is a technical omission to furnish the required information in prescribed form to Brushman about the acquisition and sale of shares as holder of more than 5% shares or voting rights in Brushman as well as its continual disclosure, however it is apparent that shares were pledged to us by the promoter of Brushman and therefore in substance Brushman is deemed to have such information which should otherwise be intimated to all stock exchanges by Brushman where it is listed as per Regulation 13(6) of PIT Regulations. . i. Brushman was in de-facto in possession of such information. Further kindly note that the said omission to give information in prescribed Form to Brushman is only technical in nature with no mala fide intentions. We have indeed informed BSE, DSE, Abhipra Capital Ltd., Asst Vice President, Legal and Secretarial of Brus
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Source: SecMarx — sebi:ISD/SICPA/AO/DRK-DS/EAD3-545/89-2014. 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.