sebi:PM/NR/2021-22/11328-11338
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
All 11 Noticees held liable for violating disclosure requirements under SEBI (SAST) Regulations, 1997 and 2011 as Persons Acting in Concert; monetary penalty imposed under Section 15A(b) of the SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15I
- s. 15J
- s. 13(2)
Regulations
- Reg. 7
- Reg. 13
- Reg. 11
- Reg. 199
- Reg. 13(1)
- Reg. 13(3)
- Reg. 29
- Reg. 8(2)
- Reg. 13(6)
- Reg. 7(1)
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29(3)
- Reg. 7(2)
- Reg. 29(1)
- Reg. 30(2)
Holding
All 11 Noticees, as promoters of Kanchan International Ltd. deemed to be Persons Acting in Concert, violated Regulation 7(1A) read with Regulation 7(2) of SEBI (SAST) Regulations, 1997 and Regulation 29(2) read with Regulation 29(3) of SEBI (SAST) Regulations, 2011 by failing to disclose cumulative change in shareholding of 2% and above on 4 occasions and making delayed disclosure on 1 occasion. The Adjudicating Officer declined to separately charge Noticees 1 to 4 for individual non-disclosure since they were already charged cumulatively as PACs.
Full text
Adjudication Order in respect of 11 promoters of Kanchan International Ltd., Page 2 of 24 Kitchen Aid Pvt., Ltd., (Noticee 1), Kanchan C Khimavat (Noticee 2), Dinesh C Khimavat (Noticee 3), Usha Khimavat (Noticee 4), Kanchan Engineering Pvt., Ltd., (Noticee 5), Bharat Pipalia (Noticee 6), Mahendra D Khimavat (Noticee 7), Chetan Khimavat (Noticee 8), Pravin D Khimavat (Noticee 9), Marlex Products Ltd., (Noticee 10) and Marlex Appliances Pvt., Ltd., (Noticee 11) together with Persons Acting in Concert (PACs) have failed to disclose the cumulative change in shareholding by 2% and above, as required under SEBI (Substantial Acquisition of Shares & Takeovers), 1997 (hereinafter referred to “SAST Regulations”) and SEBI (SAST) Regulations, 2011. Accordingly, it was alleged that all the Noticees had violated the provisions of Regulation 7(1A) read with Regulation 7(2) of SEBI (SAST) Regulations, 1997 and Regulation 29(2) read with Regulation 29 (3) of SEBI (SAST) Regulations, 2011. The investigation also found that consequent upon change in shareholding in respect of the four promoters viz., Kanchan Kitchen Aid Pvt., Ltd., (Noticee 1), Kanchan C Khimavat (Noticee 2), Dinesh C Khimavat (Noticee 3), and Usha D Khimavat (Noticee 4) had either not made the requisite disclosure or made delayed disclosures under the provisions of SEBI (SAST) Regulations, 1997 & 2011 and SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as “SEBI (PIT) Regulations). Accordingly,
Adjudication Order in respect of 11 promoters of Kanchan International Ltd., Page 3 of 24 2018 under Section 19 of the SEBI Act, 1992 read with Section 15I of the SEBI Act and Rule 3 of (SEBI Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to “Adjudication Rules”) to inquire into and adjudge the violations of the provisions of SEBI (SAST) & SEBI (PIT) Regulations, alleged to have been committed by the Noticees, under Section 15A(b) of SEBI Act..
Adjudication Order in respect of 11 promoters of Kanchan International Ltd., Page 4 of 24 the hearing was scheduled through videoconferencing on Webex platform on January 8, 2021. The link for joining the hearing through videoconference on Webex platform along with the login credentials were sent to the Noticees through email at the Email IDs mentioned in Paragraph 3 above on January 7,
You have read the preview. Create a free account to read the full order, track this party, and analyse it in Ontology.
Free accounts include 10 searches/day with full order access.
Source: SecMarx — sebi:PM/NR/2021-22/11328-11338. 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.