sebi:Order/KS/AA/2019-20/6884
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Facts / Headnote
Penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 7
- Reg. 13
- Reg. 29(2)
- Reg. 29(3)
- Reg. 35(2)
Parties
- Heroic Mercantile Private Limited
Holding
The Noticee violated Regulation 29(2) read with Regulation 29(3) of the SAST Regulations, 2011 by failing to make timely disclosures on two occasions, and a penalty of Rs. 2,00,000 under Section 15A(b) of the SEBI Act was imposed on Heroic Mercantile Private Limited.
Full text
Page 2 of 22 was made by the Noticee under Regulation 29(2) read with Regulation 29(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as the ‘SAST Regulations, 2011’). In view of the same, SEBI initiated adjudicating proceedings against the Noticee. APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 22 4. The SCN sent to the Noticee returned undelivered with the remarks “Consignee shifted”. In view of the same, an attempt was made to affix the same in terms of Adjudication Rules on October 04, 2019. However, I find from the affixture report that the attempt was not successful for the reason mentioned as “Consignee shifted”.
Page 4 of 22 the Noticee, it failed to avail of the hearing opportunity on the scheduled date. 7. Thereafter, a final opportunity of hearing was granted to the Noticee on February 11, 2020, vide hearing notice dated February 03, 2020. From available records, I note that the said hearing notice was duly served on the Noticee. I further note that the Noticee availed of the hearing opportunity on February 11, 2020 and was represented by Ms. Rinku Valanju, Advocate (hereinafter referred to as “AR”). During the hearing, the AR submitted reply of the Noticee dated February 08, 2020 and reiterated the contents of the said letter. The same has been extracted as below: - (a) At the very outset, the Noticee may bring to your notice that the period of examination is between October 24, 2016 to November 22, 2016 and the above referred SCN is dated September 25, 2019. There is, therefore, a great delay of nearly 3 years in the issuance of the SCN. This delay has caused prejudice to the Noticee as the Noticee does not have relevant data regarding sale of shares in its possession. The Noticee stands guided by Hon'ble SAT's judgment dated 22nd August, 2019 in the case of Ashok Shivlal Rupani & Ors versus Securities and Exchange Board of India (Appeal No. 440 of 2018 and Appeal No. 417 of 2018), para nos. 6 and 7 is reproduced below: “Having considering the matter, we are of the view that there has been an inordinate delay on the part of the respondent in initiating proceedings against the ap
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Source: SecMarx — sebi:Order/KS/AA/2019-20/6884. 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.