sebi:Order/SM/KL/2020-21/10045
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Facts / Headnote
Violation established; total penalty of Rs 2,00,000 imposed
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15I
- s. 15J
- s. 28A
Regulations
- Reg. 3
- Reg. 10
- Reg. 10(1)
- Reg. 3(3)
- Reg. 10(5)
- Reg. 10(1)(a)
- Reg. 10(6)
- Reg. 10(7)
Parties
- Mr Neelam Kumar Oswal
Holding
The Noticee violated Regulations 10(5), 10(6) and 10(7) of the SAST Regulations, 2011 in respect of his October 20, 2016 acquisition of 45,00,000 shares by inter-se transfer. A total monetary penalty of Rs 2,00,000 was imposed on Mr Neelam Kumar Oswal under Sections 15A(a) and 15A(b) of the SEBI Act, 1992.
Full text
Adjudication order in the matter of Punjab Woolcombers Limited Page 2 of 12 Regulations, since the instant transaction was an inter-se transaction which took place between the promoters of the company (who have also been shown as promoters in the shareholding filings made by the company to BSE for not less than three years), the same was exempt from the obligation to make an open offer as specified in Reg. 3 of the SAST Regulations. However, the exemption from making the open offer was subject to the acquirer i.e in this case, the Noticee complying with the requirements specified in Regulations 10(5), 10(6) and 10(7) of the SAST Regulations. It is alleged that the Noticee has failed to comply with these requirements and therefore, adjudication proceedings have been initiated against the Noticee under the provisions of sections 15 A (a) & 15A(b) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’) for his violation of the aforementioned provisions of SAST Regulations.
Adjudication order in the matter of Punjab Woolcombers Limited Page 3 of 12 committed by the Noticee. In the SCN, the following allegations were levelled against the Noticee:
Adjudication order in the matter of Punjab Woolcombers Limited Page 4 of 12 submissions to the SCN by November 23, 2020. The Noticee submitted his reply to the SCN vide his letters dated November 19, 2020 and December 02, 2020 and inter alia made the following major submissions:-
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Source: SecMarx — sebi:Order/SM/KL/2020-21/10045. 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.