sebi:Order/VV/JR/2019-20/4626
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Facts / Headnote
SCN disposed of with no penalty; no further action warranted against the Noticee
Provisions invoked
- s. 23J
- s. 23E
- s. 21
Regulations
- Reg. 38
Parties
- Smiths & Founders (India) Limited
Holding
The adjudicating officer disposed of Show Cause Notice No. SEBI/EAD-9/SM/JR/21693/2018 dated August 3, 2018 without imposing any monetary penalty. No further action was warranted as the Corporate Finance Department had already disposed of the representation with a warning and corrected shareholding had been filed.
Full text
In the matter of Smiths & Founders (India) Limited Page 2 of 8 read with section 21 of SCRA along with alleged violation of regulation 38 of LODR read with rule 19A of SCRR and SEBI circular CIR/CFD/CMD/14/2015 dated November 30, 2015.
In the matter of Smiths & Founders (India) Limited Page 3 of 8 ii. Due to inadvertence, from 2014 to 2018 the company erroneously considered the shareholders of the erstwhile Smiths and Founders India Ltd. as promoters and therefore it resulted into a confusion that the company was not compliant with the requirement of the minimum public shareholding norms. iii. On 21 August 2018, the company made a representation to the Corporate Finance Department of the Securities and Exchange Board of India stating that the company was in fact compliant with the minimum public shareholding norms and there was only an error in filing the shareholding pattern with the Stock Exchange. iv. The Corporate Finance Department of SEBI disposed off the representation made by the company to file the correct shareholding pattern with the stock exchanges for the relevant period considering the directions as per clause 12.10 (b) of the BIFR scheme. The company was advised to be cautious in its conduct in the future. v. The company, in compliance with the directions contained in the letter dated 7 March 2019, revised the shareholding pattern on the stock exchange website and the shareholding pattern reflects that the public shareholding in the company as far in excess of 25%. vi. On 16 April 2019, the BSE Limited issued a letter confirming that the company had filed revised shareholding pattern in compliance with the letter dated 7 March 2019 issued by SEBI and that the company is compliant with the min
In the matter of Smiths & Founders (India) Limited Page 4 of 8 (b) Do the violations, if any, on the part of the Noticee attract monetary penalty under Section 23E of SCRA?; and, (c) If so, what would be the quantum of monetary penalty that can be imposed on the Noticee after taking into consideration the factors mentioned in section 23J of the SEBI Act read with the Adjudication Rules?
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Source: SecMarx — sebi:Order/VV/JR/2019-20/4626. 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.