sebi:RA/CB/320-327/2018
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Facts / Headnote
Penalty of Rs. 10,00,000 imposed jointly and severally for violation of Regulation 11(2) read with Regulation 14(1) of the SAST Regulations
Provisions invoked
- s. 11
- s. 15
- s. 15H
- s. 15I
- s. 15J
- s. 15F
Regulations
- Reg. 11
- Reg. 10
- Reg. 8
- Reg. 14
- Reg. 14(1)
- Reg. 11(1)
- Reg. 11(2)
- Reg. 32
- Reg. 3(2)
Holding
The Noticees, holding more than 55% but less than 75% of Residency Projects and Infratech Ltd., violated Regulation 11(2) read with Regulation 14(1) by acquiring additional shares on August 04, 2004 and February 16, 2006 without making public announcements. A monetary penalty of Rs. 10,00,000 jointly and severally was imposed under Section 15H(ii) of the SEBI Act.
Full text
Adjudication Order in the matter of Residency Projects and Infratech Limited Page 2 of 17 Projects and Infratech Ltd. (hereinafter be referred to as, the “Company” or “RPIL”) wherein, a penalty of of ` 50,00,000/- (Rupees Fifty Lakhs only) was imposed on the Noticees under Section 15H(ii) of the Securities and Exchange Board of India Act, 1992 (hereinafter be referred to as, the “SEBI Act”) for violation of provisions of Regulation 11(2) read with Regulation 14 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter be referred to as, the “SAST Regulations”). Aggrieved by the said ex-parte Adjudication Order, the Noticees filed an Appeal No. 438 of 2014 before the Hon’ble Securities Appellate Tribunal (hereinafter be referred to as, the “Hon’ble SAT”).
Adjudication Order in the matter of Residency Projects and Infratech Limited Page 3 of 17 a) that the Noticees (erstwhile promoters of the company) were persons acting in concert (PAC) and they had consolidated their holding by acquiring shares as mentioned below: Date of Purchase No. of shares purchased Post- acquisition holding Percentage of share capital Change in percentage of shareholding August 04, 2004 100 6,57,960 68.62 0.01 February 16, 2006 1900 6,59,860 68.82 0.20 March 31, 2007 200 6,60,060 68.84 0.02
Adjudication Order in the matter of Residency Projects and Infratech Limited Page 4 of 17 he shall be liable to a penalty twenty-five crore rupees or three times the amount of profits made out of such failure, whichever is higher.”
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Source: SecMarx — sebi:RA/CB/320-327/2018. 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.