sebi:PM/NR/2021-22/12749
Facts / Headnote
Noticee held liable for delayed public announcement of open offer; penalty under Section 15H(ii) of SEBI Act attracted
Provisions invoked
- s. 15
- s. 19
- s. 11B
- s. 11
- s. 15H
- s. 15J
Regulations
- Reg. 4
- Reg. 6
- Reg. 13
- Reg. 11
- Reg. 3
- Reg. 15
- Reg. 16
- Reg. 10
- Reg. 17
- Reg. 14
- Reg. 5
- Reg. 14(1)
- Reg. 21
- Reg. 13(4)
- Reg. 15(1)
- Reg. 23
- Reg. 201
- Reg. 3(1)
- Reg. 32
- Reg. 18
Parties
- Karvy Financial Services Ltd.
Holding
KFSL breached the open-offer timing obligation by making the public announcement on August 31, 2018 with a delay of 81 days beyond the 45 days allowed from the SAT Order dated April 26, 2018, and is therefore liable for monetary penalty under Section 15H(ii) of the SEBI Act.
Full text
Adjudication Order in respect of Karvy Financial Services Ltd., in the matter of Regaliaa Realty Ltd., Page 2 of 33 3. Thereafter, KFSL had filed an Appeal before the Hon’ble Securities Appellant Tribunal (SAST) challenging the SEBI’s Order dated October 27, 2016 and the Hon’ble SAT vide Order dated April 26, 2018 dismissed the Appeal filed by KFSL, thereby reaffirming the decision of the SEBI.
Adjudication Order in respect of Karvy Financial Services Ltd., in the matter of Regaliaa Realty Ltd., Page 3 of 33 violation committed by it. I note that the SCN was duly served on the Noticee by Speed Post and Email.
Adjudication Order in respect of Karvy Financial Services Ltd., in the matter of Regaliaa Realty Ltd., Page 4 of 33 on 16th February, 2012, KFSL was constrained to invoke the pledge on 20,00,100 equity shares into its own Demat Account with the sole intention of eradicating the risk associated with the pledged security. By virtue of the pledge being invoked, KFSL shareholding in Regalia Realty Limited was 55.56%. However, since the shares were infrequently traded, KFSL could not dispose the same through sale.
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Source: SecMarx — sebi:PM/NR/2021-22/12749. 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.