sebi:PG/AO/98/2011
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Facts / Headnote
Violation established; monetary penalty imposed; matter disposed of
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 13
Holding
The Noticee violated Regulations 13(4) and 13(5) of the PIT Regulations by failing to make timely disclosure of acquisition of 90,402 shares on June 17 and 18, 2010, and a penalty of Rs. 24,00,000 was imposed under Section 15A(b) of the SEBI Act, 1992.
Full text
Page 2 of 9 2. SEBI conducted investigation into the transactions in the shares of the company for the period June 01, 2010 to September 30, 2010 ( ‘investigation period’) based on the said complaint to ascertain whether any provisions of the Securities and Exchange Board of India Act, 1992 ( ‘SEBI Act’) and PIT Regulations have been violated during the investigation period. It was alleged by the company that, on June 17, 2010 and June 18, 2010, the Noticee had purchased/acquired 47,402 and 43,000 equity shares respectively, a total of 90,402 shares of the company. However, no disclosures were made by the Noticee as required under Regulations 13 (4) and (5) of the PIT Regulations. During the investigation, it was also noted from a perusal of the BSE site that no such disclosures were available thereon. Further, the Noticee also failed to furnish conclusive evidence or provide copies of disclosures along with the acknowledgement of the company and the stock exchange despite being asked specifically to do so during the investigation. BSE had also confirmed that no disclosures in respect of the above acquisitions were filed with it by the company.
Page 3 of 9 Show Cause Notice, Reply & Personal hearing 5. Show Cause Notice dated May 11, 2011 (SCN) was issued to the Noticee in terms of the provision of Rule 4 (1) of the Adjudication Rules to show cause as to why an inquiry should not be held against him in respect of the violations alleged to have been committed by him. The SCN alleges that the Noticee failed to make disclosures to the company on acquisition of shares in accordance with the PIT Regulations.
Page 4 of 9 Mangaldas & Suresh A.Shroff & Co., Advocates and Solicitors, along with Mr. Kishore Talreja, authorised representative had appeared on behalf of the Noticee and filed additional reply vide letter dated July 14, 2011.
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Source: SecMarx — sebi:PG/AO/98/2011. 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.