sebi:ORDER/SBM/KL/2021-22/14767-14774

SEBI · SEBI · 2021-03-03 · Suresh B Menon, Adjudicating Officer

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Facts / Headnote

Penalty of Rs. 3,00,000/- imposed jointly and severally on the Noticees for violation of Regulations 30(1) & (2) r/w Regulation 30(3) of the SAST Regulations

Provisions invoked

• s. 15A
• s. 15
• s. 19
• s. 15I
• s. 15J
• s. 15F
• s. 14

Regulations

• Reg. 6
• Reg. 2
• Reg. 8(2)
• Reg. 30(3)
• Reg. 30(1)
• Reg. 30
• Reg. 30(2)
• Reg. 201
• Reg. 31

Holding

The Noticees (promoters/promoter group of ISG Traders Limited) violated Regulations 30(1) and 30(2) read with Regulation 30(3) of the SAST Regulations by failing to make annual disclosures of their aggregate shareholding and voting rights to the Calcutta Stock Exchange and to the target company during the examination period of January 2015 to February 2021, and are liable to a penalty of Rs. 3,00,000/- under Section 15A(b) of the SEBI Act.

Full text

Adjudication Order in the matter of ISG Traders Limited 2 exclusively listed on the Calcutta Stock Exchange (hereinafter referred to as ‘CSE’). The letter of RoC inter alia mentioned about certain irregularities / non- compliances with the provisions of the listing agreement by ISG during the period January 2015 to February 2021 (hereafter referred to as the ‘examination period’/ ‘relevant period’). Subsequently, SEBI undertook an examination in the matter. Pursuant to the examination conducted by SEBI, it was observed that the promoters of ISG had failed to make the necessary disclosures to the stock exchange i.e. CSE and to the Target Company i.e. ISG, in terms of the provisions of Regulations 30 (1), 30 (2) r/w Regulation 30 (3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as ‘SAST Regulations’) w.r.t their shareholding and voting rights in ISG during the aforementioned examination period. In view of the above reasons, adjudication proceedings were initiated against the promoters of ISG under the provisions of section 15 A(b) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’.

Adjudication Order in the matter of ISG Traders Limited 3 make the necessary disclosures in terms of Regulations 30 (1) and 30 (2) r/w Regulation 30 (3) of the SAST Regulations during the examination period, adjudication proceedings were initiated against the promoters of ISG i.e persons/entities mentioned at Sl Nos. 1 to 8 in Table 1 above. In the context of the present proceedings, the promoters mentioned in Table-1 above (Noticee nos 1 to 8) are hereinafter collectively referred to as (‘Noticees’). APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order in the matter of ISG Traders Limited 4 Table-1 Name Connection with Company ISG Traders Ltd Company Mr. Gouri Prasad Goenka

Source: SecMarx — sebi:ORDER/SBM/KL/2021-22/14767-14774. 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.