sebi:Order/PM/SM/2021-22/11346
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Facts / Headnote
Penalty of Rs. 5,00,000 imposed on the Noticee for failure to comply with regulation 29(2) r/w 29(3) of SAST Regulations, 2011
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 29
- Reg. 29(2)
- Reg. 29(3)
- Reg. 7(2)
Parties
- Chaitya Rajesh Shah
Holding
The Noticee violated regulation 29(2) r/w 29(3) of the SAST Regulations, 2011 by failing to disclose disposal of shares when his selling crossed 2% of total shareholding of Gitanjali Gems Ltd. on December 13, 2017, and a penalty of Rs. 5,00,000 was imposed under section 15A(b) of the SEBI Act, 1992.
Full text
Adjudication order in respect of Chaitya Rajesh Shah in the matter of Gitanjali Gems Ltd. Page 2 of 16 Regulations, 2011) while dealing in the scrip of Company. Accordingly, SEBI initiated adjudication proceedings against the Noticee under the provisions of section 15A(b)for the aforesaid alleged violation of SAST Regulations, 2011.
Adjudication order in respect of Chaitya Rajesh Shah in the matter of Gitanjali Gems Ltd. Page 3 of 16 a) SEBI conducted an examination in the dealings in the scrip of GGL to examine the violation, if any, of the provisions of SAST Regulations, 2011. It has been observed that the Noticee had traded in the scrip of GGL during the investigation period. SEBI observed that the Noticee had executed the following transactions in the market in the scrip of GGL during the relevant period: Date Buy Quantity Sell Quantity 28-Nov-2017 0 135000 30-Nov-2017 0 652568 01-Dec-2017 0 620574 11-Dec-2017 0 500000 13-Dec-2017 0 500000 14-Dec-2017 0 1000000 15-Dec-2017 0 1000000 18-Dec-2017 0 1000000 19-Dec-2017 0 500000 21-Dec-2017 0 894754
Adjudication order in respect of Chaitya Rajesh Shah in the matter of Gitanjali Gems Ltd. Page 4 of 16 shareholding or voting rights in the target company, in such form as may be specified. d) It has been observed by SEBI that no disclosure from the Noticee is available on the websites of the Stock Exchanges i.e. BSE and NSE under regulations 29(2) r/w 29(3) of SAST Regulations, 2011 for the aforesaid transactions made by the Noticee in the scrip of GGL. Vide e-mails dated March 11, 2020, NSE and BSE submitted that they had not received any disclosure from the Noticee under the provision of SAST Regulations, 2011. Further, SEBI, vide e-mail dated March 11, 2020 requested the Noticee to provide the details of disclosures made under regulation 29 of SAST Regulations, 2011 along with the documentary evidence for the aforesaid disposal of shares in the scrip of GGL. However, no reply was received from the Noticee in this regard. The copies of the e-mails dated March 11, 2020 from the Stock Exchanges and copy of the e-mail dated March 11, 2020 to the Noticee provided to the Noticee. e) In view of the above, it is alleged that the Noticee failed to make disclosure for the aforesaid disposal of shares to the company and to the exchanges and hence violated the provision of regulations 29(2) r/w 29(3) of the SAST Regulation, 2011.
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Source: SecMarx — sebi:Order/PM/SM/2021-22/11346. 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.