sebi:Order/KS/AA/2019-20/6174-6175
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 on both noticees under Section 15HB of the SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
- s. 15F
- s. 28A
- s. 58
Regulations
- Reg. 16
- Reg. 27
- Reg. 18
- Reg. 27(5)
- Reg. 18(8)
Parties
- Shri Vatsal Agarwaal
- Gretex Corporate Services Pvt. Ltd.
Holding
The Adjudicating Officer held that Noticee 1 (Shri Vatsal Agarwaal) violated Regulation 18(8) of the SAST Regulations by failing to start the tendering period (including obtaining the OTB acquisition window on iBBS platform of BSE) within twelve working days from receipt of SEBI's comments, and Noticee 2 (Gretex Corporate Services Pvt. Ltd.) violated Regulation 27(5) of the SAST Regulations by lacking due diligence in ensuring compliance with Regulation 18(8). Penalties of Rs. 1,00,000/- on Noticee 1 and Rs. 2,00,000/- on Noticee 2 were imposed under Section 15HB of the SEBI Act.
Full text
Page 2 of 19 acquisition for OTB on iBBS platform for tendering in offer. Therefore, SEBI observed that Noticee 1 had violated the provisions of Regulation 18(8) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011 (hereinafter referred to as ‘SAST Regulations’) by starting tendering period after 12 days from the date of receipt of comments from SEBI and Noticee 2 had violated the provisions of Regulation 27(5) of SAST Regulations by showing lack of due diligence including compliance with Regulation 18(8) of SAST Regulations. In view of the above, SEBI initiated adjudication proceedings under Section 15HB of the SEBI Act, 1992 (hereinafter referred to as ‘SEBI Act’) against Noticee 1 and Noticee 2.
Page 3 of 19 from date of receipt of comments from SEBI and shall remain open for ten working days. In terms of Regulation 18(8) of SAST Regulations, the said open offer opened on December 13, 2018 with date of closing being December 27,
Page 4 of 19 (iv) There were no losses or damages caused to the investors as the revised offer price was calculated after adding interest for the delayed days. (v) At last I seek your kind attention to the second last paragraph of the email dated May 24, 2019 by BSE to SEBI wherein BSE has said "In view of the above fact, since the tendering period of the open offer was re-opened within 12 days from SEBI email granting permission for re-opening of tendering period, the said open offer may be construed to be in compliance with Regulation 18(8) of SEBI (SAST) Regulations, 2011".
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/KS/AA/2019-20/6174-6175. 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.