sebi:PKK/AO/71/2011

SEBI · SEBI · 2010-08-17 · P K Kuriachen, Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Allegations not established; matter disposed off with no penalty

Provisions invoked

• s. 15A
• s. 15

Regulations relied on

• SEBI (PIT) Regulations, 1992
• SEBI (SAST) Regulations, 1997

Parties

• Ms. Nita A Patel

Holding

The allegations against Ms. Nita A Patel for failure to disclose the sale/change in shareholding of KCBFL under Regulations 7(1A), 7(2) and 8(2) of the Takeover Regulations and Regulations 13(3) and 13(5) of the IT Regulations were held not established, and the matter was disposed off without penalty.

Full text

Page 2 of 7 BSE’ respectively). However, no trading has been observed in the scrip on ASE. 2. On the basis of the BSE’s snap investigation report, SEBI conducted investigation in order to examine the violation of the said Takeover Regulations and IT Regulations by the promoters/persons acting in concert of KCBFL. During the course of the investigation, it was inter alia revealed that as on 31.12.03, Ms. Nita A Patel, Shri Hitesh Bhatt, Shri Jayesh V Patel, Shri Rajesh V Patel, Shri Kirti Patel, M/s. Glacier Credit Capital Limited and M/s. Prime Finstocks Limited are shown as persons acting in concert with the promoters together holding 29.15% of the paid up capital of KCBFL. The individual holdings of Ms. Nita Patel (hereinafter referred to as the ‘Noticee’), Shri Rajesh Kumar V Patel and M/s. Prime Finstocks Limited were 1.44%, 9.5% and 2.27% respectively as on 31.12.03. These entities including the Noticee have sold 18,90,000 shares (Noticee 5,40,000 shares (4.09%) on March 3, 2004, Shri Rajesh Kumar V Patel 10,50,000 shares (7.61%) on March 9, 2004 and M/s. Prime Finstocks Limited 3,00,000 shares (2.27%) on March 3, 2004) constituting 13.63% of the paid-up capital of KCBFL in March 2004 to Shri K C Bokadia.

Page 3 of 7 Appointment of Adjudicating Officer 4. SEBI vide Order dated August 17, 2010 appointed the undersigned as the Adjudicating Officer (AO) under Section 15-I of the Act read with Rule 3 of SEBI (Procedure for holding Inquiry and Imposing Penalty by Adjudicating Officer) Rules, 1995 (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 the Takeover Regulations and IT Regulations.

Page 4 of 7 and that she has not done anything wrong and requested for a lenient view to be taken. Consideration of Issues, Evidence and Findings

Source: SecMarx — sebi:PKK/AO/71/2011. 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.