sebi:Order/PM/SM/2020-21/10090-10093
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Violations of regulations 29(1) r/w 29(3) of SAST Regulations, 2011 established; violations of regulations 29(2) r/w 29(3) not established. Penalty of Rs. 1,00,000/- imposed on each Noticee.
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 28A
- s. 9(1)
- s. 25(1)
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 29(1)
- Reg. 29
- Reg. 29(2)
- Reg. 29(3)
- Reg. 7(2)
- Reg. 201
Parties
- Jagdishbhai Dahyalal Thakkar
- Bhavnaben Jagdishkumar Thakkar
- Dhaval Jagdishkumar Thakkar
- Thakkar Jagdishchandra Dahyalal HUF
Holding
The Noticees violated regulations 29(1) r/w 29(3) of the SAST Regulations, 2011 by failing to disclose their acquisition of 12.06% of ATCL shares within the prescribed two-day timeframe, but did not violate regulations 29(2) r/w 29(3) as regulation 29(3) did not contemplate a time limit for disclosure of share disposals during the relevant period.
Full text
Adjudication order in respect of Jagdishbhai Dahyalal Thakkar, Bhavnaben Jagdishkumar Thakkar, Dhaval Jagdishkumar Thakkar and Thakkar Jagdishchandra Dahyalal HUF in the matter of Alora Trading company Ltd. Page 2 of 24 and Takeovers) Regulations, 2011 (hereinafter referred to as the SAST Regulations, 2011). The shares of ATCL are listed on the Bombay Stock Exchange Limited (hereinafter referred to as BSE). It was observed by SEBI that Mr. Jagdishbhai Dahyalal Thakkar (hereinafter referred to as Noticee 1), Bhavnaben Jagdishkumar Thakkar (hereinafter referred to as Noticee 2), Dhaval Jagdishkumar Thakkar (hereinafter referred to as Noticee 3) and Thakkar Jagdishchandra Dahyalal HUF (hereinafter referred to as Noticee 4 and hereinafter collectively referred to as Noticees) had made transactions in the scrip of ATCL in the relevant period. However, it has been alleged that no disclosure was made by the Noticees under the provisions of regulations 29(1) and 29(2) read with (r/w) regulation 29(3) of the SAST Regulations,
Adjudication order in respect of Jagdishbhai Dahyalal Thakkar, Bhavnaben Jagdishkumar Thakkar, Dhaval Jagdishkumar Thakkar and Thakkar Jagdishchandra Dahyalal HUF in the matter of Alora Trading company Ltd. Page 3 of 24 SHO CAUSE NOTICE, REPLY AND PERSONAL HEARING:
Adjudication order in respect of Jagdishbhai Dahyalal Thakkar, Bhavnaben Jagdishkumar Thakkar, Dhaval Jagdishkumar Thakkar and Thakkar Jagdishchandra Dahyalal HUF in the matter of Alora Trading company Ltd. Page 4 of 24 b) BSE, vide Email dated January 27, 2020, informed that the Noticees had made disclosures on May 06, 2019 for both their acquisition and sale of shares of ATCL. It is however observed that the Noticees have categorized themselves as PACs in the said disclosures. In view of the same, it has been alleged that the Noticees were PACs at the time of the transactions mentioned in table above. c) In view of the transactions mentioned in the table above, it has been alleged that the Noticees were required to make disclosures under regulations 29(2) r/w 29(3) of SAST Regulations for their transactions dated March 08, 2017, March 09, 2014 and March 14, 2014 when the collective shareholding of the Noticees reduced by more than two percent. The said disclosures were required to be made within 2 trading days of the transactions. However, the Noticees, by making the said disclosures on May 06, 2019 had allegedly made a delay of 781-787 days, as mentioned in the above table. It is therefore alleged that the Noticees, by making disclosure after a delay of 781-787 days on three separate occasions, have violated the provisions of Regulation 29(2) r/w 29(3) of the SAST Regulation. d) Further, from the disclosures dated May 06, 2019, it is also observed that the Noticees had acq
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Source: SecMarx — sebi:Order/PM/SM/2020-21/10090-10093. 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.