sebi:Order/VV/JR/2019-20/6587-6589

SEBI · SEBI · 2019-02-07 · Vijayant Kumar Verma, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Penalty imposed under Section 15HB of SEBI Act for violation of Clause 3(a) by all Noticees and Clause 3(e) by Noticee 3

Provisions invoked

• s. 15
• s. 15H
• s. 15J
• s. 28A

Regulations relied on

• SEBI (PIT) Regulations, 2015

Parties

• Prafulbhai Parshottambhai Bavishiya
• Shailesh Bhai Parshottambhai Bavishiya
• Arunaben Prafulkumar Bavishiya

Holding

All three Noticees violated Clause 3(a) of the company's code of conduct read with Regulation 9(1) of PIT Regulations by trading over 10,000 shares without pre-clearance, and Noticee 3 additionally violated Clause 3(e) by executing contra trades without relaxation. Penalty under Section 15HB was imposed on the Noticees.

Full text

In the matter of Siddarth Businesses Limited Page 2 of 11 3”) (together they are referred to as “Noticees”) were directors of the company and traded in the shares of the company exceeding the threshold limit without obtaining pre-clearance of trade which is in violation of clause 3(a) of the code of conduct adopted by the company, as required under regulation 9(1) of SEBI (Prohibition of Insider Trading) Regulations, 2015 (hereinafter referred to as “PIT Regulations”). Further, it is alleged that Noticee 3 had executed contra trades without obtaining necessary approvals during the period July 4, 2014 to October 30, 2016 (hereinafter referred to as “investigation period”) which is in violation of clause 3(e) of the code of conduct adopted by the company, as required under regulation 9(1) of PIT Regulations.

In the matter of Siddarth Businesses Limited Page 3 of 11 4. In order to comply with the principles of natural justice an opportunity of personal hearing was given to the Noticees by the undersigned on January 14, 2020 vide notice dated December 20, 2019. On the scheduled date of personal hearing, the Authorised Representative of Noticee 1 appeared and sought further time to make submission. Another opportunity of personal hearing was given to the Noticees on January 21,

In the matter of Siddarth Businesses Limited Page 4 of 11 7. Before proceeding further, I would like to refer to the relevant provisions of the PIT Regulations and code of conduct.

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