sebi:Order/MC/HP/2022-23/16583-16589
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Facts / Headnote
Violations established against Noticees 1 to 3 (Reg 7(1A) read with 7(2) SAST 1997), Noticees 1 to 6 (Reg 30(2) read with 30(3) SAST 2011 for FY 2013), Noticee 1 (Reg 13(3) read with 13(5) PIT), and Noticee 7 (Reg 8(3) SAST 1997); no penalty for the FY 2012 disclosure delay; total penalty of Rs. 3,00,000 imposed.
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 11
- Reg. 199
- Reg. 10
- Reg. 13(3)
- Reg. 8(3)
- Reg. 31
- Reg. 7(2)
- Reg. 201
- Reg. 30(3)
- Reg. 30(2)
- Reg. 8(1)
- Reg. 7(1)(A)
- Reg. 2(1)(z)(f)
Parties
- HDIL Infra Projects Limited (Noticee 1)
- Rakesh Wadhawan (Noticee 2)
- Sarang Wadhawan (Noticee 3)
- Waryam Singh (Noticee 4)
- Ashok Kumar Gupta (Noticee 5)
- Karan Kumar Gupta (Noticee 6)
- Broadcast Initiatives Limited (Noticee 7)
Holding
The Adjudicating Officer found Noticees 1 to 3 in violation of Regulation 7(1A) read with 7(2) of SAST Regulations 1997 for failure to disclose acquisition of 60,00,000 shares, Noticees 1 to 6 in violation of Regulation 30(2) read with 30(3) of SAST Regulations 2011 for FY 2013 disclosure delay of 15 working days, Noticee 1 in violation of Regulation 13(3) read with 13(5) of PIT Regulations, and Noticee 7 in violation of Regulation 8(3) of SAST Regulations 1997. No penalty was imposed for the FY 2012 disclosure delay as the disclosure was timely, and no penalty was imposed for the FY 2013 delay given the minor nature of the 15 working day delay.
Full text
Adjudication Order in the matter of Broadcast Initiatives Limited Page 2 of 24 BACKGROUND 1. Securities and Exchange Board of India (hereinafter be referred to as, 'SEBI') initiated adjudication proceedings under Section 15A(b) of the SEBI Act, 1992 (hereinafter referred to as, 'SEBI Act'), against HDIL Infra Projects Limited (Noticee 1), Rakesh Wadhawan (Noticee 2), Sarang Wadhawan (Noticee 3), Waryam Singh (Noticee 4), Ashok Kumar Gupta (Noticee 5), Karan Kumar Gupta (Noticee 6) and Broadcast Initiatives Limited (Noticee 7/Company/BIL) pursuant to examination in the matter of Broadcast Initiatives Limited. The Noticees 1 to 7 are collectively referred to as 'Noticees/You'.
Adjudication Order in the matter of Broadcast Initiatives Limited Page 3 of 24 section 15A(b) of the SEBI Act, the aforesaid alleged violations against the Noticees. Subsequently, the undersigned was appointed as Adjudicating Officer (hereinafter referred to as “AO”) vide an order dated June 18, 2021.
Adjudication Order in the matter of Broadcast Initiatives Limited Page 4 of 24 June 24, 2008, with the Company to acquire 60 lakh equity shares of the Company of face value Rs 10/- each at a price of Rs 36.50 per share. The Acquirers and PAC had further entered into a Share Purchase Agreement (SPA) on June 24, 2008 with Mr. Gautam Adhikari and Mr. Markand Adhikari (hereinafter Mr. Gautam Adhikari and Mr. Markand Adhikari referred as, ‘Sellers’) to acquire 69,10,140 shares at a price of Rs 10/- per share. With regard to aforesaid arrangement, the Acquirers made a public announcement on June 26, 2008 under Regulations 10 and 12 of the SAST Regulations 1997.
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Source: SecMarx — sebi:Order/MC/HP/2022-23/16583-16589. 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.