sebi:RA/DPS/161/2017

SEBI · SEBI · 2016-02-17 · Rachna Anand, Adjudicating Officer

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

Facts / Headnote

Penalty of Rs. 4,00,000 imposed on Enterprise International Limited under Section 23E of SCRA for violation of Clause 35 of Listing Agreement read with Section 21 of SCRA.

Provisions invoked

• s. 15A
• s. 21
• s. 15J
• s. 15F
• s. 23E
• s. 23
• s. 23J

Regulations relied on

• Equity Listing Agreement — 35

Parties

• Enterprise International Limited

Holding

Noticee violated clause 35 of Listing Agreement read with section 21 of SCRA by failing to disclose 15,400 partly paid-up shares for 13 quarters from December 2010 to December 2013, and a penalty of Rs. 4,00,000 under section 23E of SCRA was imposed.

Full text

Adjudication Order in respect of Enterprise International Limited Page 2 of 17 APPOINTMENT OF ADJUDICATING OFFICER 3. SEBI initiated adjudication proceedings and appointed the undersigned as Adjudicating Officer under section 23-I (1) of SCRA read with Rule 3 of the Securities Contract (Regulation) (Procedure for Holding Inquiry and imposing Penalties by Adjudicating Officer) Rules, 2005 (SCRA Adjudication Rules) vide order dated February 17, 2016, to inquire into and adjudge under section 23E of SCRA, the violations of clause 35 of Listing Agreement read with section 21 of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as ‘SCRA’) for the period December 2010 to December

Adjudication Order in respect of Enterprise International Limited Page 3 of 17 7. During examination, it was observed that during the period December 2010 to December 2013, Noticee was submitting shareholding pattern including table 1(a) of tabular format prescribed vide SEBI circular CIR/CFD/DIL/10/2010 dated December 16, 2010 wherein Partly Paid Shares were shown as Nil and capital of Noticee was shown as 30,00,000 shares.

Adjudication Order in respect of Enterprise International Limited Page 4 of 17 11. It is alleged that Noticee had forfeited these partly paid up shares on July 17, 2014 and filed a revised shareholding pattern for period ended March 2014 on July 24, 2014 & actual shareholding pattern for quarter ended June 2014 on July 22, 2014 as per BSE website.

Source: SecMarx — sebi:RA/DPS/161/2017. 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.