sebi:PB/AO-80/2010
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Facts / Headnote
Violation established; monetary penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 6
- Reg. 10
- Reg. 7(2)
- Reg. 3(1)
- Reg. 3
Parties
- Rajendra Seclease Ltd.
Holding
The Noticee violated regulation 7(1) read with regulation 7(2) of SAST Regulations by acquiring 8,66,179 shares constituting 6.72% and increasing holding from 4.93% to 11.66% without disclosure within two working days, and is liable to a monetary penalty of Rs.1,00,000 under section 15A(b) of the SEBI Act.
Full text
Page 2 of 12 (hereinafter referred to as “SAST Regulations”) and consequently, liable for monetary penalty under section 15A (b) of the SEBI Act.
Page 3 of 12 consequent to the merger duly approved by Hon’ble court, we were of the view that the regulation 7(1) read with regulation 7(2) of SAST Regulations are not applicable to us and henceforth failed to make the requisite disclosure. • The scrip of Sai Info had been suspended since February 2003. The transactions were off-market and therefore could not have any impact on the market or be prejudicial to the public interest. • The Company is small having not much business activities in software trading and investments. • The financial position of the company has not been good. • Non-disclosure is merely a procedural discrepancy and had occurred for lack of understanding and wrong comprehension of the regulatory requirement.
Page 4 of 12 wrong comprehension of regulatory requirement. In view of the above, the AO is requested to take a lenient view in the matter.
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Source: SecMarx — sebi:PB/AO-80/2010. 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.