sebi:IVD-ID-3/ACL/CSL/AO/DRK/AS/EAD-3/182/09-85/2010
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Facts / Headnote
Penalty imposed on the noticee for violations of SEBI PFUTP Regulations, 2003 and SEBI Takeover Regulations, 1997
Provisions invoked
- s. 15A
- s. 15
- s. 11B
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 3
- Reg. 7(1)
Parties
- Cavalier Securities Ltd.
Holding
The noticee, Cavalier Securities Ltd., was held to have violated Regulation 3(a), 3(c), 4(1), 4(2)(a) and 4(2)(e) of the SEBI PFUTP Regulations, 2003 and Regulation 7(1) & 7(2) of the SEBI Takeover Regulations, 1997, and a consolidated penalty of Rs. 18,00,000/- was imposed under Sections 15HA and 15A(b) of the SEBI Act, 1992.
Full text
Page 2 of 14 2005. Cavalier Securities Ltd. (hereinafter referred to as the noticee) was also one of the entities against whom the directions under Section 11B was issued.
Page 3 of 14 APPOINTMENT OF ADJUDICATING OFFICER 7. I was appointed as the Adjudicating Officer under section 15 I of the Securities and Exchange Board of India Act, 1992 read with Rule 3 of Securities and Exchange Board of India (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) and Section 15HA of the SEBI Act, 1992 the violations of the provisions of Regulation 3 (a), 3(c), 4 (1), 4(2)(a) and 4 (2) (e) of SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as SEBI PFUTP Regulations) and Regulation 7 (1) & 7 (2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (SEBI Takeover Regulations) alleged to have been committed by the noticee.
Page 4 of 14 10. However, later during the period from February 09, 2004 to August 10, 2004 (hereinafter referred to as subsequent period), RKB group off loaded the shares in the market resulting into decline of the price of the scrip from Rs. 22.50 to Rs. 2.60. It was observed that no such Board Meetings of ACL dated April 09, 2004 and August 23, 2004 took place. Moreover, it was observed that the Greater Bombay Co-operative Bank Ltd. had received recovery certificate on July 27, 2004 and the registered office of ACL was sealed by the Office of the Recovery and Sales Officer of the Co-operative Department, Mumbai (Government of Maharastra) on July 28, 2004.
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Source: SecMarx — sebi:IVD-ID-3/ACL/CSL/AO/DRK/AS/EAD-3/182/09-85/2010. 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.