sebi:RA/DPS/273/2018
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Facts / Headnote
Violation of Regulation 29(1) read with 29(3) on basis of 29(4) established ex-parte; penalty of Rs 8,00,000 imposed under Section 15A(b) of SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 15I
- s. 15J
Regulations
- Reg. 13(3)
- Reg. 29(1)
- Reg. 29
- Reg. 13(5)
- Reg. 29(4)
Parties
- M/s Butterfly Commotrade Private Limited
Holding
The Noticee violated Regulation 29(1) read with 29(3) of SAST Regulations on the basis of Regulation 29(4) by failing to disclose acquisition upon release of pledged shares crossing 5% on January 6, 2014. A monetary penalty of Rs 8,00,000 under Section 15A(b) of the SEBI Act was imposed.
Full text
Adjudication Order in respect of M/s Butterfly Commotrade Private Limited Page 2 of 12 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 December 19, 2016, to inquire into and adjudge under section 15A(b) of the SEBI Act, the violations regulation 29(1) and 29(2) read with 29(3) of SAST Regulations. SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING
Adjudication Order in respect of M/s Butterfly Commotrade Private Limited Page 3 of 12 6. During examination it was observed that the following pledged shares got released during January 2014 which caused the aforesaid change in holding of the Company. Date Client Name Counterparty Client Name Transacti on Type Debit / Credit Quantity Opening holding Issued Capital Released Shares as % of Issued Capital 06/01/2014 Pradip Petrofils Private Limited Butterfly / Noticee PLEDGE Debit 2760000 4664160 48440183 5.70 06/01/2014 Pradip Petrofils Private Limited Ontime Trading Private Limited PLEDGE Debit 1904160 4664160 48440183 3.93
Adjudication Order in respect of M/s Butterfly Commotrade Private Limited Page 4 of 12 29(2) Any person, who together with persons acting in concert with him, holds shares or voting rights entitling them to five per cent or more of the shares or voting rights in a target company, shall disclose the number of shares or voting rights held and change in shareholding or voting rights, even if such change results in shareholding falling below five per cent, if there has been change in such holdings from the last disclosure made under sub-regulation (1) or under this subregulation; and such change exceeds two per cent of total shareholding or voting rights in the target company, in such form as may be specified.
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Source: SecMarx — sebi:RA/DPS/273/2018. 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.