sebi:Order/SM/S./2022-23/20356-20372
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Facts / Headnote
Violations of SAST Regulations 31(1), 31(2) read with 31(3) and PIT Regulations 13(4), 13(4A) read with 13(5) established against certain Noticees; allegation under Regulation 29(2) read with 29(3) of SAST Regulations not established; penalties imposed including Rs. 4,00,000 on Nitish Pitale
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 28A
- s. 560
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 13
- Reg. 13(4)
- Reg. 199
- Reg. 29
- Reg. 31
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29(3)
- Reg. 7(2)
- Reg. 2(1)(q)
- Reg. 31(1)
- Reg. 31(3)
- Reg. 31(2)
Holding
The Adjudicating Officer held that Noticees 1 to 9 violated Regulations 31(1) and 31(2) read with Regulation 31(3) of SAST Regulations by failing to disclose creation, release, and invocation of pledges within the prescribed time, and that Noticees 1 to 9 violated Regulation 13(4)/13(4A) read with Regulation 13(5) of PIT Regulations by failing to disclose changes in shareholding. However, the allegation that Noticees 1-17 violated Regulation 29(2) read with 29(3) of SAST Regulations was not established because the relevant phrase was inserted only by an amendment effective September 11, 2018, after the transactions in question.
Full text
Adjudication Order in the matter of Omnitech Infosolutions Ltd Page 2 of 27 FACTS OF THE CASE IN BRIEF 1. Securities and Exchange Board of India (hereinafter referred to as 'SEBI') received a complaint alleging manipulations in scrip of Omnitech lnfosolutions Ltd (hereinafter referred to as 'Omnitech/by name/the Company’) by its promoters and their associates. Thereafter, SEBI conducted investigation in the matter of Omnitech for the period January 01, 2012 to December 31, 2014 (hereinafter referred to as 'Investigation Period/IP'). The Company was listed on BSE Ltd (‘BSE’) and National Stock Exchange of India Ltd (‘NSE’). Based on investigation, SEBI observed certain violations of provisions of SEBI (Prevention of Insider Trading) Regulations, 1992 (hereinafter referred to as 'PIT Regulations') and SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as 'SAST Regulations').
Adjudication Order in the matter of Omnitech Infosolutions Ltd Page 3 of 27 under the provisions of Section 15A(b) of SEBI Act for the violations of various regulations, mentioned at paragraph 2 of this order, alleged to have been committed by them.
Adjudication Order in the matter of Omnitech Infosolutions Ltd Page 4 of 27 all Noticees and a letter of authority in favour of Noticee 11 was submitted as part of Annexures to the said reply. Subsequently, vide Hearing Notice dated July 15, 2022, which was duly served on Noticee 11 via SPAD and Digitally Signed Email, Noticees were granted an opportunity of hearing on August 03, 2022. Thereafter, vide their email dated August 02, 2022, CS Shailashri Bhaskar, the AR of Noticees 1-7, Noticees 10-11 and Noticees 15-17 confirmed that she shall appear for the hearing on behalf of the said Noticees. Thereafter, on the scheduled date the AR appeared for the hearing on the scheduled dated. During the course of hearing, AR of Noticees 1-7, Noticees 10-11 and Noticees 15-17 reiterated the
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Source: SecMarx — sebi:Order/SM/S./2022-23/20356-20372. 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.