sebi:RA/DPS/294/2018

SEBI · SEBI · 2015-08-17 · Rachna Anand, Adjudicating Officer

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

Facts / Headnote

Violation of regulation 3(i) of PIT Regulations not established; Noticee held liable for delayed disclosure under section 15A(b) of SEBI Act and monetary penalty imposed

Provisions invoked

• s. 15A
• s. 15
• s. 15G
• s. 15J
• s. 12
• s. 15F
• s. 4A
• s. 151
• s. 203

Regulations relied on

• SEBI (PIT) Regulations, 1992 — 13(4)
• SEBI (PIT) Regulations, 1992 — 3(i)

Parties

• Ajit Lele

Holding

The violation of regulation 3(i) of PIT Regulations against the Noticee does not stand established, as the Noticee was given benefit of doubt on the first instance and no fault was found on the second instance. However, the Noticee, being CEO of the company, was found liable for delayed disclosure of shareholding changes to stock exchanges (delay of approximately 1 year 5 months), warranting a monetary penalty under section 15A(b) of the SEBI Act.

Full text

Adjudication Order in respect of Ajit Lele Page 2 of 24 closure period before quarterly and annual results in September 2013 and March 2014 respectively.

Adjudication Order in respect of Ajit Lele Page 3 of 24 results in September 2013 and March 2014 respectively. In this regard, it is observed that the company has informed the information regarding impending declaration of quarterly results for period ending September 30, 2013 and March 31, 2014, were made with the Board of Directors and other Key Management Persons through dispatch of respective agenda dated October 22, 2013 (for quarterly results for the period ending September 30, 2013) and May 14, 2014 (for Audited financial results for quarter and year ending March 31, 2014). It is revealed that Noticee has traded in October 2013 and April 2014 just before announcement of financial results of the company in November 2013 and May 2014 and it is also revealed that Noticee traded even before the agenda for meeting was circulated to board. The details of trades done by the Noticee is given below:- Date Gross Buy Volume Gross Sell Volume Net Traded Volume Gross Traded Volume Gross Buy Value Gross Sell Value 09/01/2013 5000 0 5000 5000 290000.00 0.00 28/02/2013 1800 0 1800 1800 96300.00 0.00 25/03/2013 1000 0 1000 1000 46300.00 0.00 26/03/2013 1000 0 1000 1000 45900.00 0.00 01/04/2013 13 0 13 13 625.30 0.00 18/10/2013 0 18 -18 18 0.00 1692.00 22/10/2013 0 900 -900 900 0.00 84600.00 31/10/2013 0 982 -982 982 0.00 109984.00 09/04/2014 0 1800 -1800 1800 0.00 444600.00 17/04/2014 0 1300 -1300 1300 0.00 371500.00 29/04/2014 0 400 -400 400 0.00 120400.00 23/06/2014 0 220 -220 220 0.

Adjudication Order in respect of Ajit Lele Page 4 of 24 violated regulation 3(i) and regulation 13(4) read with 13(5) of PIT Regulations. The aforesaid regulations are reproduced as under;

Source: SecMarx — sebi:RA/DPS/294/2018. 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.