sebi:PKK/AO/164/2010
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Facts / Headnote
Penalty of Rs. 1,00,000 imposed for violation of SAST Regulations; charges under Insider Trading Regulations dropped for lack of evidence
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 13
Parties
- Ravi Panchal
Holding
The Noticee violated Regulation 7(1) read with 7(2) of the SAST Regulations by crossing 5% holding without disclosure and is liable to penalty of Rs. 1,00,000 under Section 15A(b); violation of Regulations 13(1) and 13(3) read with 13(5) of the Insider Trading Regulations was not established and benefit of doubt was given.
Full text
Page 2 of 10 course of the investigation period it came to light that he had decreased his holdings by more than 2% of the total share holding of FTEL in the month of June 2004. He has not made disclosures as required under SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997 (hereinafter referred to as ‘SAST Regulations’) and SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as ‘Insider Trading Regulations’).
Page 3 of 10 Show Cause Notice, Reply and Personal Hearing 4. The AO issued a notice dated August 01, 2008 (hereinafter referred to as ‘SCN’) under Rule 4 of the Adjudicating Rules to the Noticee to show cause as to why an inquiry should not be held against him and penalty be not imposed under Sections 15 A(b) of the SEBI Act, for the alleged violation of the provisions of Regulations 7 (1) read with 7 (2) of SEBI, SAST Regulations and Regulations 13 (1) and 13 (3) read with 13 (5) of Insider Trading Regulations, 1992 for which the adjudication proceeding has been initiated and therefore the Noticee is liable for monetary penalty as prescribed under section 15A(b) of the Act.
Page 4 of 10 the Adjudication Rules, 1995. However, neither the Noticee nor his representative submitted any reply to the SCN.
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Source: SecMarx — sebi:PKK/AO/164/2010. 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.