sebi:Order/SR/PP/2020-21/8471/49
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Facts / Headnote
Violation found; penalty of Rs. 1,00,000 imposed
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15J
- s. 28A
Regulations
- Reg. 199
- Reg. 29(2)
- Reg. 29(3)
- Reg. 201
Parties
- Ethan Constructions Pvt. Ltd.
Holding
The Noticee violated regulation 29(2) r/w regulation 29(3) of SAST Regulations by failing to disclose within time the disposal of shares on September 12, 2016, and a monetary penalty of Rs. 1,00,000 under section 15A(b) of the SEBI Act was imposed.
Full text
Adjudication order in respect of Ethan Constructions Pvt. Ltd. in the matter of Kavit Industries Ltd. Page 2 of 13 APPOINTMENT OF ADJUDICATING OFFICER
Adjudication order in respect of Ethan Constructions Pvt. Ltd. in the matter of Kavit Industries Ltd. Page 3 of 13 exchanges under SAST Regulations, as the change in Noticee’s shareholding exceeded two per cent of its shareholding in KIL. Noticee is alleged to have violated the provisions of regulation 29(2) r/w 29(3) of SAST Regulations. In this regard, OD observed that the BSE vide email dated January 02, 2018 informed that Noticee has not submitted the disclosure under SAST Regulations for shares it had disposed on September 12, 2016. Copy of BSE’s email dated January 02, 2018 showing trade details is placed as Annexure C of the SCN. From the trading details, it is observed that opening balance of the Noticee as on July 22, 2016 was 43,80,000 and on September 12, 2016 Noticee has sold 2,02,000 shares as a result of which change in Noticee’s shareholding exceeded two per cent of total shareholding in the target company. Thus the Noticee is alleged to have violated provisions of regulation 29(2) r/w regulation 29(3) of SAST Regulations.
Adjudication order in respect of Ethan Constructions Pvt. Ltd. in the matter of Kavit Industries Ltd. Page 4 of 13 (b) the target company at its registered office.
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Source: SecMarx — sebi:Order/SR/PP/2020-21/8471/49. 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.