sebi:Order/AP/VS/2020-21/10105

SEBI · SEBI · 2019-07-31 · Amit Pradhan, Adjudicating Officer

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Facts / Headnote

Violation established; consolidated monetary penalty imposed

Provisions invoked

• s. 15A
• s. 15
• s. 15I
• s. 15J
• s. 15H
• s. 15F
• s. 28A
• s. 15I(2)

Regulations

• Reg. 13
• Reg. 13(4)
• Reg. 199
• Reg. 13(6)
• Reg. 13(5)
• Reg. 12
• Reg. 201
• Reg. 12(2)(a)
• Reg. 12(2)(b)

Parties

• Mr. Shashikant B Garware

Holding

The Noticee, a promoter-director of Garware Polyester Limited, violated regulation 13(4) read with 13(5) of the PIT Regulations, 1992 by failing to disclose acquisition to the stock exchange within the stipulated time, and is liable to a consolidated monetary penalty of Rs. 1,00,000 under Section 15A(b) of the SEBI Act, 1992.

Full text

_______________________________________________________________________________ Adjudication Order in respect of Mr. Shashikant B Garware in the matter of Garware Polyester Limited Page 2 of 9 this sub regulation, and the change exceeds Rs. 5 lakh in value or 25,000 shares or 1% of total shareholding or voting rights, whichever is lower. (5) The disclosure mentioned in sub-regulations (3) and (4) shall be made within two working days of : (a) the receipts of intimation of allotment of shares, or (b) the acquisition or sale of shares or voting rights, as the case may be.

_______________________________________________________________________________ Adjudication Order in respect of Mr. Shashikant B Garware in the matter of Garware Polyester Limited Page 3 of 9 granted to the Noticee on December 10, 2020, which was communicated to Noticee vide email dated November 06, 2020. Further, due to ongoing pandemic situation the Noticee was also given option to avail the hearing opportunity through video-conferencing on the Webex platform.

_______________________________________________________________________________ Adjudication Order in respect of Mr. Shashikant B Garware in the matter of Garware Polyester Limited Page 4 of 9 AO was appointed on July 31, 2019. The erstwhile sought certain clarification from SEBI and in the meantime pursuant to the transfer of the erstwhile AO the matter was assigned to the undersigned on January 07, 2020. After receiving the clarification in the month of April 2020 the SCN dated July 16, 2020 was issued to the Noticee. From the above details it is observed that there is apparently no delay in initiating the proceedings. In support of my findings on the issue of delay raised by the Noticee, I observe that in the case of Ravi Mohan & Ors. Vs. SEBI (SAT Appeal No. 97 of 2014 decided on 16.12.2015), Hon’ble SAT while referring to its own decision in HB StockHoldings case (Appeal no. 112 of 2013 decided on August 08, 2013) and decision of Hon’ble Supreme Court in Collector of Central Excise, New Delhi vs. Bhagsons Paint Industry (India) reported in 2003 (158) ELT 129 (S.C.), held as under: “…Based on decision of this Tribunal in case of HB Stockholdings Ltd. vs. SEBI (Appeal no. 114 of 2012 decided on 27.08.2013) it is contended on behalf of the appellants that in view of the delay of more than 8 years in issuing the show cause notice, the impugned order is liable to be quashed and set aside. There is no merit in this contention, because, this Tribunal while setting aside the dec

Source: SecMarx — sebi:Order/AP/VS/2020-21/10105. 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.