sebi:Order/SBM/PP/2018-19/1491-1492
Facts / Headnote
Held liable for violation of Regulations 29(2) r/w 29(3) of SAST Regulations, 2011; penalty of Rs. 2,00,000 imposed on each Noticee under Section 15A(b) of SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations relied on
- SEBI (SAST) Regulations, 2011 — 29(2)
Parties
- Mr. Suresh Nenmalji Malvi
- Ms. Minaben Prafulbhai Shah
Holding
The Adjudicating Officer held that Mr. Suresh Nenmalji Malvi and Ms. Minaben Prafulbhai Shah, as persons acting in concert, violated Regulations 29(2) r/w 29(3) of SAST Regulations, 2011 and imposed a penalty of Rs. 2,00,000 on each Noticee under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 14 the matter and based on the observations/findings contained therein, an interim order dated November 05, 2013 (followed by a corrigendum dated November 18, 2013) was passed against 38 persons/entities, including Mr. Suresh Nenmalji Malvi (hereinafter referred to as ‘Mr. Suresh’ / ‘Noticee 1’) and Ms. Minaben Prafulbhai Shah (hereinafter referred to as ‘Ms. Minaben / ‘Noticee 2’) wherein, the 38 persons/entities named in the interim order, were, inter alia, restrained from accessing the securities market and also prohibited from buying, selling or dealing in the securities market, either directly or indirectly, in any manner whatsoever, till further directions. Further, vide the interim order dated November 5, 2013, the 38 persons/entities, including Noticee 1 and 2 were directed to keep in an escrow account, jointly and severally, within 30 days of the interim order, an amount of Rs 6,00,11,512/- that they have earned as ill- gotten profit that they have realized as sale proceeds of the shares allotted to them in the preferential allotment made by STL on March 15, 2012.
Page 3 of 14 of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as ‘SAST Regulations’), the Noticees had declared in their respective disclosure formats submitted to the stock exchange i.e. BSE that they were ‘persons acting in concert’ (PACs). It was further observed that the investigation report which was submitted in the said matter had also made observations regarding the fact that both Noticee 1& 2 were PACs w.r.t the above mentioned acquisition of 19,91,000 shares of STL. Therefore, in the context of the present proceedings, the Noticees are also hereinafter referred to as PACs.
Page 4 of 14 APPOINTMENT OF ADJUDICATING OFFICER 6. The undersigned was appointed as the Adjudicating Officer, vide an order dated September 08, 2016 under Section 15-I of the SEBI Act read with Rule 3 of the Securities and Exchange Board of India (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as 'Adjudication Rules') to inquire into and adjudge under the provisions of section 15A(b) of the SEBI Act, the aforementioned alleged violation of the provisions of law by the Noticees.
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