sebi:PKK/AO/267/2010
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Facts / Headnote
Penalty imposed on the Noticee for failure to disclose shareholding changes
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 13
- Reg. 8
Parties
- KCBFL
Holding
The Noticee (KCBFL) violated Regulations 7(3) and 8(3) of the SEBI Takeover Regulations and Regulation 13(6) of the SEBI IT Regulations by failing to disclose changes in shareholding of its promoters/persons acting in concert to the stock exchanges, and a penalty of Rs. 5,00,000 was imposed under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 9 net profit during two quarters during March-June 2004. The scrip of KCBFL is listed on the Ahmedabad Stock Exchange and Bombay Stock Exchange (hereinafter referred to as ‘ASE and BSE’ respectively). However, no trading has been observed in the scrip on ASE.
Page 3 of 9 (hereinafter referred to as the ‘Adjudicating Rules’) to inquire into and adjudge under Section 15 A (b) of the SEBI Act, the alleged violation by the Noticee of the provisions of Regulations 7 (3) and 8 (3) of the SEBI Takeover Regulations and Regulation 13 (6) of the SEBI IT Regulations. SEBI vide Order dated August 17, 2010 appointed the undersigned as the AO in the instant matter subsequent to the transfer of Shri Deore to the Enforcement Department.
Page 4 of 9 8. As the Noticee has not put up any defence or challenged the SCN, it can be assumed that the charges levelled in the SCN have been accepted by the Noticee. This is in accordance with the principle laid by Hon’ble Securities Appellate Tribunal in the matter of Classic Credit Ltd. v. SEBI1 wherein it was inter-alia held that “…The appellants did not file any reply to the second show-cause notice. This being so, it has to be presumed that the charges alleged against them in the show-cause notice were admitted by them”.
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Source: SecMarx — sebi:PKK/AO/267/2010. 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.