sebi:RA/DPS/249/2017

SEBI · SEBI · 2015-10-26 · Rachna Anand, Adjudicating Officer

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Facts / Headnote

Penalty imposed on the Noticee for violation of regulation 13(6) of PIT Regulations

Provisions invoked

Regulations

Parties

Holding

The Noticee, M/s Polytex India Ltd, was held in violation of regulation 13(6) of the PIT Regulations, 1992 for failing to disclose to BSE the inclusion of Anugrah Stock Broking Pvt. Ltd. in the promoter group on November 2, 2012 and subsequent transactions on November 5, 6, 7 and 8, 2012. A penalty of Rs. 3,00,000 was imposed under section 15A(b) of the SEBI Act after considering mitigating factors under section 15J.

Full text

Adjudication Order in respect of M/s Polytex India Ltd Page 2 of 20 APPOINTMENT OF ADJUDICATING OFFICER 2. SEBI initiated adjudication proceedings and appointed the undersigned as Adjudicating Officer under section 15I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as 'SEBI Act') read with rule 3 of the SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) vide order dated October 26, 2015, to inquire into and adjudge under section 15A(b) of the SEBI Act, the violations of regulation 13(6) of PIT Regulations read with 12(2) of PIT Regulations, 2015. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING

Adjudication Order in respect of M/s Polytex India Ltd Page 3 of 20 GIL April 18, 2012 to December 17, 2012 Price 9.1 15.75 8.89 (18/04/12) 20.65 (17/09/12) 613411 Vol 735713 1512824 735713 1130515 KGN December 27, 2011 to December 17, 2012 Price 200 396.25 177.25 (02/04/12) 898 (24/01/12) 65560 Vol. 17372 57287 11 (23/03/12) 253764 (19/03/12) PIL April 13, 2012 to December 17, 2012 Price 136.5 250.85 134.15 (18/04/12) 281 (23/11/12) 102835 Vol. 91058 77481 5382 (01/08/12) 294476 ( 02/11/12)

Adjudication Order in respect of M/s Polytex India Ltd Page 4 of 20 8. During investigation it was observed that the addition of Anugrah Stock Broking Pvt. Ltd. (Anugrah) as a promoter on 02/11/2012, Anugrah has made disclosure u/r 13(2A) of SEBI (PIT) Regulations, 1992, to the Noticee on 05/11/2012 was provided as Annexure – 2 of SCN. Investigation alleges that the Noticee failed to make the disclosure to BSE u/r 13(6) of PIT Regulations, 1992, which has been confirmed by BSE vide its email dated March 23, 2015 which was placed as Annexure – 3 of SCN. During investigation information was sought from the Noticee, however, the Noticee has not confirmed that the said disclosure has been made by it to BSE, which was placed as Annexure – 4 of SCN.

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Source: SecMarx — sebi:RA/DPS/249/2017. 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.