sebi:RA/DPS/75-86/2017
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Facts / Headnote
Violations found; monetary penalty imposed on Noticee No. 1 (Tien Trading Pvt Ltd) of Rs. 7,50,000/- (Rs. 3,50,000 under SAST Regulations and Rs. 4,00,000 under PIT Regulations); violations also found against Noticees No. 3 to 9 and Noticees No. 10 to 12
Provisions invoked
- s. 15A
- s. 15J
- s. 15
- s. 15F
Regulations
- Reg. 13(3)
- Reg. 29(1)
- Reg. 29
- Reg. 29(2)
- Reg. 29(3)
Holding
The Adjudicating Officer held that Noticee No. 1 (Tien Trading Pvt Ltd) violated Regulation 29(2) read with 29(3) of SAST Regulations and Regulation 13(3) and 13(4A) read with 13(5) of PIT Regulations; Noticees No. 3 to 9 violated Regulation 29(1) and 29(2) read with 29(3) of SAST Regulations; and Noticees No. 10 to 12 violated Regulation 29(1) read with 29(3) of SAST Regulations for failure to disclose shareholding changes.
Full text
Page 2 of 30 Sarwankumar Saraf, (the Noticee No. 5 / Sunita), Sunaina Nareshkumar Saraf, (the Noticee No. 6 / Sunaina), Sweta Sarwankumar Saraf, (the Noticee No. 7 / Sweta), Sarwankumar Devidutt Saraf, (the Noticee No. 8 / Sarwan), Nareshkumar Kishanlal Saraf, (the Noticee No. 9 / Nareshkumar), Ajay Kumar Mahabir Prasad Halan, (the Noticee No. 10 / Ajay), Pavan Kumar M Halan, (the Noticee No. 11 / Pavan) and Om Hari Halan, (the Noticee No. 12 / OmHari) had traded in the scrip and failed to make disclosure under SEBI(Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as ‘SAST Regulations’) and SEBI(Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as ‘PIT Regulations’). All the Noticees collectively referred as 'the Noticees'.
Page 3 of 30 5. During the examination period, it was revealed that one of the promoter, Noticee No. 1 (Tien) had not disclosed about the change (i.e. his holding came down from 33.22% to 14.47%) in its shareholding to the exchanges as well as to the company and hence, alleged to have violated regulation 29(2) read with 29(3) of SAST Regulations and regulation 13(3) and 13(4A) read with 13(5) of PIT Regulations. The details of which is given below:- Date of Transaction Opening Balance (1063000 (33.22%)) No of shares sold Closing balance % holding Disclosures required under SAST Disclosures required under PIT 24.07.2012 1063000 58800 1004200 31.38
Page 4 of 30 29.08.2012 420900 99800 321100 10.03 29(2) r.w 29(3) 13 (3) r.w 13(5) & 13(4A) r.w 13(5) 31.08.2012 321100 86800 234300 7.32 29(2) r.w 29(3) 13 (3) r.w 13(5) & 13(4A) r.w 13(5) 03.09.2012 234300 13400 220900 6.90
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Source: SecMarx — sebi:RA/DPS/75-86/2017. 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.