sebi:Order/SR/PP/2020-21/157
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Facts / Headnote
Penalty imposed on the Noticee for violation of regulations 3(i) and 3(ii) of PIT Regulations
Provisions invoked
- s. 15
- s. 12A
- s. 15I
- s. 15G
- s. 15J
- s. 15A
- s. 28A
- s. 271B
- s. 44A
- s. 273B
Regulations
- Reg. 3
- Reg. 10
- Reg. 12
- Reg. 2
- Reg. 3(i)
- Reg. 2(c)
- Reg. 2(e)
Parties
- Hemant Patel
Holding
The Noticee, Hemant Patel, was found to be an insider of KLG Capital Services Ltd. who traded in its shares on the basis of unpublished price sensitive information, in violation of regulations 3(i) and 3(ii) of the PIT Regulations, and a penalty of Rs. 7,63,908/- was imposed under section 15G of the SEBI Act.
Full text
Adjudication Order in respect of Hemant Patel in the matter of KLG Capital Services Ltd. Page 2 of 36 2. OD initiated adjudication proceedings in the matter of KLG, to inquire into and adjudge, under section 15G of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘the SEBI Act’), the alleged violation of regulations 3(i) and 3(ii) of PIT Regulations by Hemant Patel (hereinafter referred to as ‘the Noticee’).
Adjudication Order in respect of Hemant Patel in the matter of KLG Capital Services Ltd. Page 3 of 36 September 04, 2014 respectively (hereinafter referred to as SCNs) were issued by the previous AOs to the Noticee under rule 4 of the AO Rules to show cause as to why an inquiry should not be held against the Noticee and why penalty under section 15G of SEBI Act be not imposed on the Noticee for the violations alleged and specified in the said SCNs. The aforementioned SCNs were sent to the Noticee through hand delivery. Proof of service of the SCNs upon the Noticee is available on record.
Adjudication Order in respect of Hemant Patel in the matter of KLG Capital Services Ltd. Page 4 of 36 has informed the Company vide their letter dated February 28, 2008 that they have acquired above said quantity. As a result the control and management of the KLG Capital Services Ltd (Target Company) shall be transferred to the acquirer after successful completion of Open Offer formalities under the SEBI Takeover Code 1997. The Company has further informed BSE that M/s Awaita Properties Pvt Ltd has informed the Company that they have purchased 17,11,287 (Seventeen Lac Eleven Thousand Two Hundred Eighty Seven only) of Equity shares of KLG Capital Services Ltd comprising of 53.44% of the existing paid up share Capital of the Company from the open market as per their letter dated February 28, 2008. With the above, their aggregate shareholding reaches to 60.46% (19,36,075 share) 28-Feb-2008 KLG Capital Services Ltd has informed BSE that M/s. Awaita Properties Pvt Ltd has informed the Company that they have purchased 224788 (Two Lacs Twenty Four Thousand Seven Hundred Eighty Eight only) of Equity shares of KLG Capital Services Ltd Company comprising of 7.02% of the existing paid up share Capital of the Company from the open market as per their letter dated February 26, 2008. 05-Mar-2008 Networth Stock Broking Ltd ("Manager to the Offer") on behalf of Awaita Properties Pvt Ltd ("Acquirer") has issued this Public Announcement to the equity shareholders of KLG Capital Services Ltd ("
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Source: SecMarx — sebi:Order/SR/PP/2020-21/157. 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.