sebi:Order/SM/DD/2022-23/16261
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Facts / Headnote
Penalty imposed on Noticee for violations of Regulation 7(2)(a) of PIT Regulations and Clauses 6 and 10 of Schedule B read with Regulation 9(1) of PIT Regulations
Provisions invoked
- s. 11B
- s. 11
- s. 15A
- s. 15
- s. 19
- s. 15H
- s. 15I
- s. 15J
- s. 15F
- s. 28A
Regulations
- Reg. 7(2)(a)
- Reg. 9(1)
Parties
- Mr. Mahesh S
Holding
The Noticee, a designated person of Titan, violated Regulation 7(2)(a) of PIT Regulations by failing to disclose transactions exceeding Rs. 10 lakh in a calendar quarter, and violated Clauses 6 and 10 of Schedule B read with Regulation 9(1) of PIT Regulations by not obtaining pre-clearance and by executing contra trades within six months. A total penalty of Rs. 2,00,000 was imposed (Rs. 1,00,000 under Section 15A(b) and Rs. 1,00,000 under Section 15HB of the SEBI Act).
Full text
Page 2 of 14 India Act, 1992 (hereinafter referred to as ‘SEBI Act’) for alleged violation of Regulation 7(2)(a) of PIT Regulations by Noticee and under Section 15HB of SEBI Act for alleged violations of Clauses 6 and 10 of Schedule B read with Regulation 9(1) of PIT Regulations.
Page 3 of 14 b) It is observed from the table above that on the one (1) Calendar Quarter ending on December 31, 2018, total traded value of the securities traded by Noticee, in the scrip of Titan, has exceeded Rs. 10 Lakh. It is alleged that the Noticee was required to make disclosure in terms of Regulation 7(2)(a) of PIT Regulations on one (1) occasion to the company. In this regard, TCL vide email dated October 28, 2020, has confirmed that it had not received any disclosures from the Noticee. Accordingly, it is alleged that Noticee has violated Regulation 7(2)(a) of PIT Regulations c) It was further observed that in case of Noticee (who was a designated person in Titan), cumulative value of trades in the shares of TCL exceeded Rs 10 lakhs i.e. above threshold level defined in TCL’s code of conduct during the financial year 2018-19. The trading details of Noticee are provided as below:- Name of the entity Quarter Date Segment Exchange Buy Qty Buy Value Sell qty Sell value
Page 4 of 14 of transaction in any financial year exceeds Rs 10 lakhs (market value).”. It was observed that TCL vide email dated November 05, 2020 and letter dated November 09, 2020 to SEBI has confirmed that Noticee had not taken any pre- clearance approval from the Compliance Officer of TCL. e) Further, SEBI observed that Noticee has executed contra trades during the investigation period, the details of the same are provided as below:-
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Source: SecMarx — sebi:Order/SM/DD/2022-23/16261. 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.