sebi:JJ/AM/AO-42-51/2014

SEBI · SEBI · 2014-03-25 · Jayanta Jash, Adjudicating Officer

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalty imposed of Rs. 50,00,000/- jointly and severally on the ten Acquirers for violation of Regulation 10 of SAST Regulations read with Regulation 35 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Provisions invoked

• s. 15H
• s. 15J

Regulations

• Reg. 10
• Reg. 2
• Reg. 35

Holding

The ten Acquirers, acting in concert, violated Regulation 10 of the SAST Regulations by acquiring approximately 41.35% of the paid-up capital of Kwality Credit & Leasing Limited without making a public announcement, and are liable for a penalty of Rs. 50,00,000/- under Section 15H of the SEBI Act, 1992.

Full text

Adjudication Order in the matter of Kwality Credit & Leasing Limited Page 2 of 13 March 25, 2014 BACKGROUND 1. Securities and Exchange Board of India (SEBI) received large number of alerts since 01/09/2010 on high off-market transfers in the shares of Kwality Credit & Leasing Limited (KCLL). It was observed that between 15/09/2010 and 21/09/2010, a total of 23,25,821 shares (around 66.45% of equity capital of KCLL) were transferred in off- market deals to a group of entities who had demat accounts with depository participant, Guiness Securities Limited (GSL). Subsequently, SEBI conducted detailed investigation in the matter.

Adjudication Order in the matter of Kwality Credit & Leasing Limited Page 3 of 13 March 25, 2014 15/09/2010 UTKARSH AGRO AGENCIES PRIVATE LIMITED 50000 50000 150000 4.28% 16/09/2010 UTKARSH AGRO AGENCIES PRIVATE LIMITED 50000 100000 20/09/2010 UTKARSH AGRO AGENCIES PRIVATE LIMITED 50000 150000 15/09/2010 SHRI VISHNU KRUPA COMMODITIES PRIVATE LIMITED 50000 50000 161600 4.61% 16/09/2010 SHRI VISHNU KRUPA COMMODITIES PRIVATE LIMITED 50000 100000 20/09/2010 SHRI VISHNU KRUPA COMMODITIES PRIVATE LIMITED 61600 161600 15/09/2010 PAWANTAR AGRO AGENCIES PVT LTD 50000 50000 120900 3.45% 16/09/2010 PAWANTAR AGRO AGENCIES PVT LTD 48200 98200 20/09/2010 PAWANTAR AGRO AGENCIES PVT LTD 22700 120900 15/09/2010 PARAMARTH AGRO MARKETING PRIVATE LIMITED 50000 50000 130100 3.71% 16/09/2010 PARAMARTH AGRO MARKETING PRIVATE LIMITED 50000 100000 20/09/2010 PARAMARTH AGRO MARKETING PRIVATE LIMITED 30100 130100 15/09/2010 PARAM COMMODITIES PRIVATE LIMITED 50000 50000 142932 4.08% 16/09/2010 PARAM COMMODITIES PRIVATE LIMITED 42932 92932 21/09/2010 PARAM COMMODITIES PRIVATE LIMITED 50000 142932 16/09/2010 MIATRU AGRO MARKETING PRIVATE LIMITED 50000 50000 137947 3.94% 17/09/2010 MIATRU AGRO MARKETING PRIVATE LIMITED 50000 100000 20/09/2010 MIATRU AGRO MARKETING PRIVATE LIMITED 37947 137947 Total 1447405 41.35%

Adjudication Order in the matter of Kwality Credit & Leasing Limited Page 4 of 13 March 25, 2014 Guiness Merchant Banking Services Pvt. Ltd. Kamal Kumar Kothari Kamal Kumar Kothari Apurva Commodities Pvt. Ltd. Babulal Nolkha Kalpa Mercantile Pvt. Ltd. Deepak Parakh Miatru Agro Marketing Pvt. Ltd. Paramarth Agro Marketing Pvt Ltd Pawantar Agro Agencies Pvt. Ltd. Sangam Agro Agencies Pvt. Ltd. Guiness 16anna.com Marketing Pvt. Ltd Dharmendra Kothari Dharmendra Kothari Babulal Nolkha Babulal Nolkha

Source: SecMarx — sebi:JJ/AM/AO-42-51/2014. 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.