sebi:PKK/AO/191/2011
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Facts / Headnote
Penalty imposed on Noticee for failure to disclose shareholding crossing 5% and subsequent changes exceeding 2%
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15J
Regulations
- Reg. 7(1)
- Reg. 13(3)
Holding
The Noticee violated Regulation 13(3) and 13(5) of Insider Trading Regulations and Regulation 7(1) read with 7(2) of SAST Regulations by failing to disclose his shareholding crossing 5% of FML and subsequent changes exceeding 2%, and a penalty of Rs.1,00,000 was imposed under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 9 Regulations 7(1) read with 7(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as SAST Regulations).
Page 3 of 9 5. The Noticee’s shareholding thereafter gradually decreased from 10.06% to nil as on August 18, 2005. The shareholding was changed by more than 2% on August 04, 2005, August 10, 2005 and on August 16, 2005. The Noticee failed to disclose such change to FML and therefore contravened Regulation 13(3) and 13(5) of Insider Trading Regulations.
Page 4 of 9 8. Before moving forward, it will be appropriate to refer to the relevant provision of the Insider Trading Regulations and SAST Regulations which inter alia read as under:- Insider Trading Regulations
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Source: SecMarx — sebi:PKK/AO/191/2011. 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.