sebi:Order/SR/AS/2020-21/9295-9296/139-140
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Facts / Headnote
Violations of regulation 7(2)(a) of PIT Regulations, 2015 and clause 6 of the Code of Conduct under Schedule B of regulation 9(1) of PIT Regulations, 2015 established; violation of clause 10 (contra trade) not established. Monetary penalty of Rs. 2,00,000/- imposed jointly and severally on both Noticees.
Provisions invoked
- s. 15
- s. 15J
- s. 28A
- s. 23
- s. 92
Regulations
- Reg. 9
- Reg. 3
- Reg. 7(2)(a)
- Reg. 201
- Reg. 9(1)
- Reg. 4(1)(i)
Parties
- Shri Subash Menon (Noticee 1)
- Kivar Holdings Private Ltd. (Noticee 2)
Holding
The Noticees violated regulation 7(2)(a) of PIT Regulations, 2015 (failure to disclose transaction within two trading days) and clause 6 of the Code of Conduct (failure to obtain pre-clearance) for the off-market inter-se transfer of 5,00,000 shares on August 08, 2018. The alleged violation of clause 10 (contra trade within six months) was not established, and a penalty of Rs. 2,00,000/- was imposed jointly and severally.
Full text
Adjudication Order in respect of Shri Subash Menon and Kivar Holdings Private Ltd. in the matter of Subex Limited Page 2 of 20
Adjudication Order in respect of Shri Subash Menon and Kivar Holdings Private Ltd. in the matter of Subex Limited Page 3 of 20 provide the same. Accordingly, earlier e-mail dated June 24, 2020 was forwarded to the Noticees and same was acknowledged by Noticee 1. Noticee 1, vide e-mail dated August 19, 2020 replied to the SCN for and on behalf of the Noticees. Vide e-mail dated August 28, 2020, undersigned granted an opportunity of hearing to the Noticees scheduled on September 08, 2020 and the same was acknowledged by Noticee 1. On the same day, Noticee 1 requested the said hearing on September 11, 2020 and the same was acceded to. On the scheduled date of hearing i.e. September 11, 2020, Noticee 1 attended the hearing on behalf of the Noticees through webex, an online platform. Noticee 1 reiterated the submissions made vide e-mail dated August 19, 2020 and requested for time to submit additional information/documents. Acceding to the request, Noticees were given time till September 18, 2020. Hearing minutes are on record. Noticee 1 vide e-mail dated September 14 and 16, 2020 submitted reply to the SCN on behalf of the Noticees. Proof of delivery of all the outgoing e-mails mentioned herein from the Adjudicating Officer, is available on record.
Adjudication Order in respect of Shri Subash Menon and Kivar Holdings Private Ltd. in the matter of Subex Limited Page 4 of 20 Noticee Date of transaction Off market /on market Buy/sell/ Acquisition/ Disposal Volume of transactions Noticee 1 08/08/2018 off market Acquisition 5,00,000 Noticee 2 08/08/2018 off market Disposal 5,00,000 Noticee 1 25/09/2018 on market sell 5,000 Noticee 1 26/09/2018 on market sell 2,95,000 Noticee 1 27/09/2018 on market sell 25,000 Noticee 1 28/09/2018 on market sell 1,25,000 Noticee 1 01/10/2018 on market sell 50,000
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Source: SecMarx — sebi:Order/SR/AS/2020-21/9295-9296/139-140. 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.