sebi:RA/JP/123/2017
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Facts / Headnote
Penalty imposed on both Noticees under Section 15A(b) of the SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 15J
- s. 15F
Regulations
- Reg. 13
- Reg. 13(4)
- Reg. 199
- Reg. 13(3)
- Reg. 8
- Reg. 31
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29
- Reg. 31(1)
- Reg. 58
Parties
- Empee Holdings Ltd. (Noticee No. 1)
- Mr. M. P. Purushothaman (Noticee No. 2)
Holding
The Adjudicating Officer held that Empee Holdings Ltd. and Mr. M.P. Purushothaman, as promoters of EDL, failed to make required pledge/encumbrance and shareholding-change disclosures during December 2013 to March 2015 and imposed a penalty of Rs. 5,00,000 on each under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 17 APPOINTMENT OF ADJUDICATING OFFICER 2. SEBI had initiated adjudication proceedings and appointed undersigned as the Adjudicating Officer vide order dated December 28, 2015 under section 15 I 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)’), to inquire into and adjudge under section 15A (b) of the SEBI Act, the violations of regulation 13(3), 13(4), 13(4A) read with 13 (5) of the PIT Regulations; and regulation 29(2) read with 29(3), 31(1), 31(2) read with 31(3) of the SAST Regulations, alleged to have been committed by the Noticee(s)
Page 3 of 17 release / invocation of pledged shares within a period of 7 working days from the creation or invocation or release of encumbrance. It was alleged that the Noticee No.1 had failed to disclose about creation and release of pledged shares. Date wise change in pledged shares of Noticee No. 1 was enclosed along with SCN as Annexure-III.
Page 4 of 17 encumbrance. It was alleged that the Noticee No. 2 had failed to disclose about creation of pledge / encumbrance of shares. It was alleged that for the aforesaid shares, the Noticee No. 2 had made the disclosures only under regulation 13(4) of PIT Regulations, whereas beside above, the Noticee No 2 was also required to make disclosures under regulation 13(4A) read with 13 (5) of the PIT Regulations and regulation 31(1) read with 31(3) of SAST Regulations. Hence, it was also alleged that the Noticee No. 2 had failed to make disclosures as stipulated under regulation 13(4A) of PIT Regulations. Details of pledged / encumbered shares of Noticee No. 2 has been shown in Annexure II of the SCN.
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Source: SecMarx — sebi:RA/JP/123/2017. 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.