sebi:Order/BD/AB/2020-21/9706
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
SCN disposed off without penalty
Provisions invoked
- s. 15A
Regulations
- Reg. 13(3)
- Reg. 13(5)
Holding
The SCN against the Noticee was disposed off with no penalty. The allegation of failure to make disclosures under Regulation 13(3) of the PIT Regulations was held to be unsustainable.
Full text
Page 2 of 3 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 4. A Show Cause Notice dated April 20, 2017 (hereinafter be referred to as the “SCN”) was issued to the Noticee under Rule 4 of the AO Rules to show cause as to why an inquiry should not be initiated and penalty be not imposed under Section 15A(b) of the SEBI Act for the allegations as detailed in the said SCN.
Page 3 of 3 2020 stated that it had received the disclosure from the Noticee on August 12, 2011. ORDER 10. Since the disclosures were to be made to the company and the exchanges, the only remaining verification was to be done with BPML. However, BPML hasn’t responded to even the SCN or hearing notice in the instant matter. Thus, it is not possible to ascertain the receipt of disclosure by BPML. In any case, since the disclosure was made to exchange, it would indicate that the information has been disseminated in the public domain.
5. The scrip of BPML was listed on BSE on July 7, 2011, after IPO which was open for subscription from June 20, 2011- June 23, 2011. It was observed that the Noticee was allotted 1,11,00,000 shares (9.9% shares) in the IPO of BPML. Subsequently, the Noticee sold 81,50,000 shares (7.27% shares) during the period July-September, 2011. However, the requisite disclosure to the exchange was not made and hence it was alleged that the Noticee failed to make appropriate disclosures under Reg. 13(3) of the PIT Regulations.
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:Order/BD/AB/2020-21/9706. 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.