sebi:PKK/AO/153/2011
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Facts / Headnote
Noticee held not guilty of violating Sections 13, 16 read with 18 of SCR Act; held liable for violating Regulation 13(3) read with 13(5) of PIT Regulations and penalized
Provisions invoked
- s. 15A
- s. 13
- s. 15J
- s. 15
- s. 18
- s. 17
Regulations
- Reg. 13(3)
- Reg. 13(6)
Parties
- Noticee (unnamed in text)
Holding
The Noticee was not held guilty of violating Sections 13, 16 read with 18 of the SCR Act in respect of the off-market transfer of 1,59,500 shares, but was held liable for failing to make disclosure under Regulation 13(3) read with 13(5) of the PIT Regulations for cumulative sales exceeding 2% of shareholding, and a penalty of Rs.1,00,000 was imposed under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 14 contravention of the provisions of Securities Contracts (Regulation) Act, 1956 (SCR Act). Further, the Noticee sold the remaining 1,60,500 shares of GSML constituting 5.016 % of share capital during February 4-11, 2010. Though the change in shareholding was more than 2% from the last disclosure, the Noticee failed to make the required disclosure under the provisions of SEBI (Prohibition of Insider Trading) Regulations, 1992 (PIT Regulations).
Page 3 of 14 Noticee was therefore alleged to have violated Sections 13 and 16 read with 18 of SCR Act. 5. Further the Noticee during February 4-11, 2010 sold another 1,60,500 shares in market which constituted 5.016% of share capital of GSML. The change in shareholding of the Noticee was more than 2% of the share capital. The Noticee failed to make disclosure as required under Regulation 13(3) read with 13(5) of PIT Regulations.
Page 4 of 14 c) If so, what should be the monetary penalty that can be imposed taking into consideration the factors mentioned in 23J of SCR Act and Section 15J of SEBI Act, 1992?
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Source: SecMarx — sebi:PKK/AO/153/2011. 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.