sebi:IVD-ID-3/GIL/AO/DRK/MD/EAD-3/27/2009
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Facts / Headnote
Penalty of Rs. 10,00,000 imposed against the noticees for violation of Regulation 7(1) of SAST Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7(1)
- Reg. 199
Parties
- Satya Securities Limited
- Basant Marketing Pvt. Ltd.
Holding
Satya Securities Limited and Basant Marketing Pvt. Ltd. acted in concert with a combined holding of 5.55% in Granules India Limited and failed to make disclosure under Regulation 7(1) of the SAST Regulations, and are liable to a penalty of Rs. 10,00,000 under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 11 Insurance Companies IDBI 2,70,000 3.45 86,405 1.10 Sub Total 2,70,000 3.45 96,405 1.23 4. Private Corporate Bodies 417015 5.33 11,81,855 15.11 ITC Agrotech Finance & Investment Ltd. 1,00,000 1.28 1,00,000 1.28 Southern Shares & Stocks Ltd. 2,47,360 3.16
Page 3 of 11 5. The noticees vide letter dated November 12, 2007 and December 18, 2007, requested for a copy of said SCN. As requested, a copy of the SCN was delivered to the entities on December 18, 2007 by hand delivery and acknowledgement for the same is available. The noticees replied to the SCN vide letters dated January 21, 2008 and made the following
Page 4 of 11 no requirement for us to disclose our shareholding to the company and to the stock exchanges as required in terms of Regulation 7(1) of the Takeover Regulations. (i) it is submitted that as on March 31,2003 we were holding 3.74% & 1.82 % of the total shareholding of Granuels India Ltd. and hence we cannot be said to have violated Regulation 7(1) of the Takeover Regulation as alleged. Further, as per the show cause notice we have violated Regulation 7(1) of the Takeover Regulations since we along with Basant Marketing were holding 5.5% shares of Granuels India Ltd and since allegedly we had common directors we are considered to be persons acting in concert. However, as clarified earlier both the companies did not ever have common directors and hence cannot be considered to be persons acting in concert in terms of the Takeover Regulations. Therefore, we cannot be alleged to have violated Regulation 7(1) of the Takeover Regulations as alleged. (j) It may be pointed out that at the time of acquisition of share it was never our intention to takeover the company, we had simply acquired the shares of the company for investment purposes. Further, there was no motive for us not to disclose the information since we had already crossed the limit of 1% shareholding and our name was already displayed in the returns of the company as shareholder holding more than 1% shareholding and was also disclosed on the website of the Exchange. (k) Even if we and Basant Marketing Pvt. Ltd
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Source: SecMarx — sebi:IVD-ID-3/GIL/AO/DRK/MD/EAD-3/27/2009. 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.