sebi:JJ/AO/AK/160-173/2014
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Facts / Headnote
Violation of regulation 3(4) of SAST Regulations, 1997 established against Noticee No. 1 to 11 and Sprit (for Noticee No. 12 to 14); monetary penalty imposed under section 15A(b) of the SEBI Act, with Noticee No. 1 to 11 & Sprit jointly and severally liable
Provisions invoked
- s. 15A
- s. 15
- s. 12
- s. 15J
Regulations
- Reg. 11
- Reg. 3
- Reg. 199
- Reg. 2(1)(e)
- Reg. 10
- Reg. 2(1)(b)
- Reg. 11(1)
- Reg. 3(4)
- Reg. 3(1)
- Reg. 35
- Reg. 201
- Reg. 3(1)(b)
- Reg. 2(1)(e)(1)
Holding
The Noticee No. 1 to 11 and Sprit (for Noticee No. 12 to 14) were held to have violated regulation 3(4) of the SAST Regulations, 1997 by failing to submit a report to SEBI within 21 days from the date of allotment of shares under the Rights Issue, and were held jointly and severally liable for monetary penalty under section 15A(b) of the SEBI Act.
Full text
Adjudication order in the matter of M/s SITI Cable Network Limited Page 2 of 25 December 29, 2014 FACTS OF THE CASE IN BRIEF
Adjudication order in the matter of M/s SITI Cable Network Limited Page 3 of 25 December 29, 2014 "Delgrada"/"Noticee No. 9"), Lazarus Investments Limited (hereinafter referred to as "Lazarus"/"Noticee No. 10"), Jayneer Capital Private Limited (hereinafter referred to as "Jayneer"/"Noticee No. 11"), Churu Trading Company Private Limited (hereinafter referred to as "Churu"/"Noticee No. 12"), Prajatma Trading Company Private Limited (hereinafter referred to as "Prajatma"/"Noticee No. 13") and Premier Finance and Trading Company Limited (hereinafter referred to as "Premier"/"Noticee No. 14") [Collectively referred to as "Promoter Group"] had violated the provisions of regulation 3(4) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as "SAST Regulations, 1997") read with regulation 35 of SEBI (Substantial Acquisition of Shares & Takeover) Regulations 2011 (hereinafter referred to as “SAST Regulations, 2011”) and therefore consequently, liable for monetary penalty under section 15A(b) of the SEBI Act.
Adjudication order in the matter of M/s SITI Cable Network Limited Page 4 of 25 December 29, 2014 5. It was alleged in the SCN that in terms of regulation 3(4) of the SAST Regulations, 1997, Noticee No. 1 to 14 were required to submit a report along with supporting documents to SEBI giving all details in respect of acquisition made under regulation 3(1)(b) which (taken together with shares or voting rights, if any, held by him or by persons acting in concert with him) would entitle such person to exercise 15 per cent or more of the voting rights in a company within 21 days from the date of allotment of acquisition (rights issue), which Noticee No. 1 to 14 have failed to do.
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Source: SecMarx — sebi:JJ/AO/AK/160-173/2014. 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.