sebi:IVD-ID7/SVIL-AL/AO/DRK/SS/EAD3/161-09/64-2010
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Facts / Headnote
Penalty of Rs.5,00,000 imposed on Arihant Limited for violation of Regulation 7(1A) of Takeover Regulations; allegation of violation of Regulation 13(3) of Insider Trading Regulations held not established
Provisions invoked
- s. 15A
- s. 15
- s. 370
- s. 15J
Regulations
- Reg. 7
- Reg. 11
- Reg. 2(1)(e)
- Reg. 13(3)
- Reg. 2(1)(e)(2)
Parties
- Arihant Limited
Holding
Arihant Limited violated Regulation 7(1A) of the Takeover Regulations by selling more than 2% of SVIL without disclosure to SVIL and stock exchanges and is liable to penalty of Rs.5,00,000 under Section 15A(b) of the SEBI Act. The allegation of violation of Regulation 13(3) of the Insider Trading Regulations does not stand established.
Full text
Page 2 of 16 on 28.01.2003, 29.01.2003, 03.02.2003 and 11.04.2003) the volumes were exceptionally higher. 4. Total traded quantity as provided by CSE in the scrip was 70,15,661 shares. The trading by major stock-brokers was as follows:
Page 3 of 16 APPOINTMENT OF ADJUDICATING OFFICER 8. I was appointed as the Adjudicating Officer vide order dated December 10, 2008 (subsequent to the transfer of the previous Adjudicating Officer Shri Biju S.), under Section 15 I of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as the ‘SEBI Act’) 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 ‘Adjudication Rules’) to inquire into and adjudge under Section 15A(b) of the SEBI Act, the violations of Regulation 7(1A) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as ‘Takeover Regulations’) and Regulation 13(3) of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as ‘Insider Trading Regulations’), alleged to have been committed by the noticee.
Page 4 of 16 11. It was alleged that the noticee was holding 5.44 percent shares of SVIL, i.e. more than 5 percent, as on December 31, 2002, and had sold more than 2 percent of its holdings (since its holdings as on March 31, 2003 was 1.59 percent) without making any disclosures as required under Regulation 13(3) of the Insider Trading Regulations (as seen from the share holding pattern of SVIL for the quarters ending 31/12/02 and 31/03/03).
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Source: SecMarx — sebi:IVD-ID7/SVIL-AL/AO/DRK/SS/EAD3/161-09/64-2010. 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.