sebi:RA/CB/306/2018

SEBI · SEBI · 2017-01-17 · Rachna Anand, Adjudicating Officer

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Facts / Headnote

Penalty imposed on the Noticee for failure to disclose reduction in shareholding under PIT Regulations and SAST Regulations

Provisions invoked

• s. 15A
• s. 15I
• s. 15J
• s. 15
• s. 15F

Regulations

• Reg. 13(1)
• Reg. 13(3)
• Reg. 29(2)

Parties

• Abhirati Trading Pvt. Ltd.

Holding

The Noticee failed to make disclosures as required under Regulation 13(3) read with 13(5) of the PIT Regulations and Regulation 29(2) read with 29(3) of the SAST Regulations upon reduction of its shareholding by more than 2%, and a total penalty of Rs. 9,50,000 was imposed under Section 15A(b) of the SEBI Act.

Full text

Adjudication Order in the matter of Vakrangee Limited Page 2 of 11 against the Noticee for the alleged violation of aforesaid provisions of PIT Regulations and SAST Regulations. Proceedings of appointment of the undersigned as Adjudicating Officer was communicated vide communique dated January 17, 2017.

Adjudication Order in the matter of Vakrangee Limited Page 3 of 11 e) It was alleged that the aforesaid non-disclosure regarding reduction in its shareholding by the Noticee was in violation of Regulation 13(3) read with 13(5) of the PIT Regulations and Regulation 29(2) read with 29(3) of the SAST Regulations, text of which is mentioned as below: SEBI (Prohibition of Insider Trading) Regulations, 1992 13. (3) Any person who holds more than 5% shares for voting rights in any listed company shall disclose to the company [in Form C] the number of shares or voting rights held and change in shareholding or voting rights, even if such change results in shareholding falling below 5%, if there has been change in such holdings from the last disclosure made under sub-regulation (1) or under this sub-regulation; and such change exceeds 2% of total shareholding or voting rights in the company. (5) The disclosure mentioned in sub-regulations (3), (4) and (4A) shall be made within two working days of: (a) the receipts of intimation of allotment of shares, or (b) the acquisition or sale of shares or voting rights, as the case may be.” SAST Regulations:

Adjudication Order in the matter of Vakrangee Limited Page 4 of 11 5. It was stated in the SCN that the aforesaid alleged violations, if established, would make the Noticee liable for monetary penalty under Section 15A(b) of the SEBI Act, which reads as under: 15A.

Source: SecMarx — sebi:RA/CB/306/2018. 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.