sebi:IVD/VIL/EAD-8/AO/KS/CO-02/2019
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Facts / Headnote
Settlement application No. 3727/2018 allowed; adjudication proceedings disposed of pursuant to Regulation 15(1) of the Settlement Regulations.
Provisions invoked
- s. 15A
Regulations
- Reg. 17
- Reg. 13(1)
- Reg. 29(1)
- Reg. 15(1)
- Reg. 13(5)
- Reg. 29(4)
Parties
- S. E. Investments Limited (Now known as Paisalo Digital Limited)
Holding
The Adjudicating Officer allowed the settlement application filed by S. E. Investments Limited (now Paisalo Digital Limited) and disposed of the pending adjudication proceedings initiated for non-disclosure of encumbrance and shareholding changes under the SAST and PIT Regulations.
Full text
Page 1 of 4 BEFORE THE ADJUDICATING OFFICER SECURITIES AND EXCHANGE BOARD OF INDIA SETTLEMENT ORDER (Application No. 3727/2018)
Page 2 of 4 in the Company to the Noticee. It is observed that as on February 25, 2012, total percentage of shares encumbered to the noticee was 5.62% which exceeded the threshold limit of 5%. As per regulation 29(4) of SEBI (SAST) Regulations, 2011, shares taken by way of encumbrance shall be treated as acquisition, shares given upon release of encumbrance shall be treated as a disposal and disclosures shall be made by such person accordingly in such form as may be specified. Therefore in terms of Regulation 29(1), 29(2) read with 29(3) and 29(4) of SAST Regulations, Noticee was required to disclose to the Company and Exchange within two working days of its total shares pledged by Kiran Kumar Mehta crossing 5% of paid up share capital of the Company, however it is observed that Noticee has failed to disclose.
Page 3 of 4 (hereinafter referred to as ‘Settlement Regulations’). On perusal of the aforesaid Application, I note that in Form-A of Application the Noticee has admitted to the violation of the said provisions.
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Source: SecMarx — sebi:IVD/VIL/EAD-8/AO/KS/CO-02/2019. 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.