sebi:Order/SR/SM/2019-20/7230/203
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Facts / Headnote
Violation established; penalty of Rs.1,00,000 imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 28A
- s. 23
Regulations
- Reg. 13(4)
- Reg. 13(3)
- Reg. 8(2)
- Reg. 7(3)
- Reg. 7(1)
- Reg. 6(4)
- Reg. 12
- Reg. 35
Parties
- Parag Sarda
Holding
The Noticee Parag Sarda violated regulation 7(1) r/w 7(2) of SAST Regulations, 1997 and regulation 13(3) r/w 13(5) of PIT Regulations, 1992 by failing to disclose acquisition of 2,79,998 (8.98%) shares of Sarda Papers Limited on August 06, 2002, and a penalty of Rs.1,00,000 under section 15A(b) of the SEBI Act was imposed.
Full text
Adjudication Order in respect of Parag Sarda in the matter of Sarda Papers Limited. Page 2 of 11 and saving provisions under regulation 35 of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (‘SAST Regulations, 2011) and SEBI (Prohibition of Insider Trading) Regulations, 1992 (‘PIT Regulations, 1992’) r/w repeal and savings provisions under regulation 12 of SEBI (Prohibition of Insider Trading) Regulations, 2015 (‘PIT Regulations, 2015’). The Company was listed at Bombay stock Exchange (‘BSE’), Ahmedabad Stock Exchange and Calcutta Stock Exchange at the time of violation.
Adjudication Order in respect of Parag Sarda in the matter of Sarda Papers Limited. Page 3 of 11 the Adjudication Rules requiring the Noticee to show cause as to why an inquiry should not be held against him for the alleged violations of provisions under regulation 7(1) r/w 7(2) of SAST Regulations, 1997, and regulation 13(3) r/w 13(5) of PIT Regulations, 1992 and why penalty be not imposed on the Noticee under section 15A(b) of the SEBI Act for the alleged violations as specified in the SCN. The SCN was issued to the Noticee through speed post acknowledgement due (SPAD) and the same was delivered. The acknowledgment of service of SCN is on record. It is alleged in the SCN that Noticee- On August 06, 2002 has acquired 2,79,998 (8.98%) shares of SPL and the percentage of shareholding of the Noticee crossed 5% of the share capital of SPL on August 06, 2002. Hence, Noticee was required to make disclosure to SPL and to the stock exchanges where SPL was listed, under the provisions of regulation 7(1) r/w 7(2) of SAST Regulations, 1997 and regulation 13(3) r/w 13(5) of PIT Regulations, 1992, which Noticee failed to complied with. In this regard, OD observed that the BSE vide email dated September 18, 2019 informed that Noticee has not submitted the disclosure under SAST Regulations, 1997 for the acquisition of 2,79,998 shares Noticee acquired on August 06, 2002. Copy of BSE’s email dated September 18, 2019 is enclosed as annexure B. Thus the Noticee is alleged to have violated regu
Adjudication Order in respect of Parag Sarda in the matter of Sarda Papers Limited. Page 4 of 11 the SCN and for personal hearing. Noticee appeared for hearing on the scheduled date i.e. February 26, 2020 and reiterated the submission made vide his letter dated January 23, 2020 and requested time for submission of reply to the SCN, acceding to the request, Noticee was granted time till March 06, 2020 for submission of reply. Minutes of hearing are on record.
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Source: SecMarx — sebi:Order/SR/SM/2019-20/7230/203. 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.