sebi:PG/AO/28/2013
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Facts / Headnote
No penalty imposed; matter disposed off
Provisions invoked
- s. 15
- s. 15G
- s. 15J
Regulations
- Reg. 13
- Reg. 3
- Reg. 3(i)
- Reg. 4
- Reg. 2
- Reg. 2(e)
- Reg. 12
- Reg. 24
- Reg. 2(h)
- Reg. 3A
- Reg. 3B
- Reg. 26
Parties
- Axis Bank Limited
Holding
The Adjudicating Officer held that violations of PIT Regulations, SAST Regulations and MB Regulations against Axis Bank Limited were not established and imposed no penalty under sections 15G and 15HB of the SEBI Act.
Full text
Adjudication Order in respect of Axis Bank Ltd. Page 2 of 18 Acquirer-K for the terms of open offer was initiated on April 18, 2011. The Memorandum of Understanding (MoU) between the Noticee and Acquirer-K was signed on May 16, 2011. With regard to BRFL, it was revealed that Noticee had made an open offer on April 07, 2011 to the shareholders of BRFL on behalf of AAA United B.V. along with Persons Acting in Concert (PAC) [Acquirer-B], to acquire additional 20% stake in BRFL at the price of Rs. 300 per share. It was further revealed that the negotiation between the Noticee and Acquirer-B regarding terms of open offer was initiated on February 21, 2011. The MoU between the Noticee and Acquirer- B was signed on March 31, 2011. The investigations revealed that the Noticee had traded in the shares of KEVL and BRFL during its assignment as MB to the open offers.
Adjudication Order in respect of Axis Bank Ltd. Page 3 of 18 Show Cause Notice, Reply and Hearing 3. Show Cause Notice dated October 03, 2012 (SCN) was issued to the Noticee in terms of the provisions of Rule 4 of the Adjudication Rules to show cause as to why an inquiry should not be held against it in respect of the violations alleged to have been committed by it. The SCN alleged that the Noticee had traded in the shares of KEVL and BRFL when it was acting as MB for the open offers of the said companies. Copies of letters dated September 28, 2011 with regard to correspondence with the said companies and details of trading done by the Noticee in the shares of the said companies were furnished to the Noticee along with the SCN.
Adjudication Order in respect of Axis Bank Ltd. Page 4 of 18 December 17, 2012, requested to re-schedule the personal hearing while inter alia stating that the documents sought for inspection have not been furnished to it. On the day of scheduled hearing, i.e, December 19, 2012, Shri Shashikant Rathi, SVP(DCM&ET) and Shri Advait Majmudar, VP(IB) of the Noticee along with Shri Ravichandra Hegde, Advocate appeared in person and sought adjournment of the hearing.
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Source: SecMarx — sebi:PG/AO/28/2013. 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.