sebi:Order/MC/DPS/2019-20/5165

SEBI · SEBI · 2019-09-04 · Maninder Cheema, Adjudicating Officer

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Facts / Headnote

Adjudication proceeding disposed of; no violation found

Provisions invoked

• s. 15H
• s. 15J

Regulations

• Reg. 3(1)
• Reg. 31A(2)
• Reg. 31A(5)

Parties

• M/s Amarnath Securities Limited

Holding

The Noticee, M/s Amarnath Securities Limited, was found not to be in violation of Regulation 31A(2) read with Regulation 31A(5) of LODR Regulations, and the adjudication proceeding was disposed of without imposition of any penalty.

Full text

Adjudication Order in the matter of M/s Amarnath Securities Limited Page 2 of 7 SHOW CAUSE NOTICE, REPLY AND HEARING 3. Show Cause Notice No. EAD-5/MC/DPS/22950/2019 dated September 04, 2019 (hereinafter be referred to as, the “SCN”) was served upon the Noticee under Rule 4(1) of the Adjudication Rules to show cause as to why an inquiry should not be held and penalty be not imposed against it under Section 15HB of SEBI Act, 1992, for the alleged violations of Regulation 31A(2) read with Regulation 31A(5) of LODR Regulations.

Adjudication Order in the matter of M/s Amarnath Securities Limited Page 3 of 7 7. BSE, vide email dated August 09, 2018, further informed that the Noticee had removed the name of the aforementioned entities from the Promoter category in the shareholding pattern, with effect from the quarter ended December 2016, which amounts to reclassification of promoters. This reclassification of promoters to public was carried out by the Noticee without seeking approval of its shareholders and prior approval of the Exchange, in alleged violation of the provisions of Regulation 31A(2) read with Regulation 31A(5) of LODR Regulations.

Adjudication Order in the matter of M/s Amarnath Securities Limited Page 4 of 7 subject to approval of shareholders in the general meeting and compliance of the following conditions:

Source: SecMarx — sebi:Order/MC/DPS/2019-20/5165. 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.