sebi:RKD/VSL-VSL/AO-4/2010
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Facts / Headnote
Penalty of Rs. 50,000 imposed on Vertex Spinning Ltd
Provisions invoked
- s. 15A
- s. 21
- s. 15J
- s. 15
- s. 23
- s. 23H
Regulations
- Reg. 13
- Reg. 13(6)
Parties
- Vertex Spinning Ltd
Holding
Vertex Spinning Ltd violated section 21 of SC(R) Act read with clause 35 of the listing agreement and Regulation 13(6) of PIT Regulations and is liable for monetary penalty under section 23H of SC(R) Act and section 15A(b) of SEBI Act.
Full text
Page 2 of 12 as filed by the company with the exchange for the quarter ended December 2005 and March 2006. Further, the same does not appear to be in conformity with the requirements of Clause 35 of the Listing Agreement read with Section 21 of the Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as ‘SC(R) Act’).
Page 3 of 12 Penalty by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the ‘Adjudicating Rules’) to inquire into and adjudge under section 23H of SC(R) Act & section 15A(b) of SEBI Act the alleged violation of section 21 of SC(R) Act read with clause 35 of the listing agreement & Regulation 13 (6) of SEBI PIT Regulations for the alleged non disclosures, as observed during the examination of the shareholding pattern undertaken by SEBI in the scrip of VSL.
Page 4 of 12 and the reminder notice has been received by the noticee. 10. Noticee replied to the notice vide its letter dated June 21, 2010 and June 24, 2010 stating that there was no mala-fide intention on the part of VSL, the non-disclosure, if any was inadvertent and requesting for a lenient view in the matter. The submissions of the noticee inter-alia are as under:- a) There was a change in the Registrar and Transfer agent from Adroit Corporate Service Pvt. Ltd. to Purva Sharegistry India Pvt. Ltd on January 02, 2006. b) The company had been appraised by the new Registrar and erstwhile Company Secretary that the grouping of the share holding pattern was not proper. Hence forth, the Company informed the Registrar to do the needful and make the share holding pattern by considering the guidelines and adhering to the Rules and Regulations of the SEBI and Stock Exchange. c) The new Registrar and Transfer agent of the company re- checked and undertook a comprehensive exercise and initiated concerted efforts to recheck all the registered folios, category of the subscriber of the capital of the company and in order to adhere and comply with the Rules and Regulations of SEBI and Stock Exchanges and to meticulously follow the share holding pattern, the Transfer Agent suggested the Company to reorganize the share holding pattern. d) It is stated that there was a miscoding and misclassification in the share holding pattern due to technical mistake and the erstwhile Registrar was una
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Source: SecMarx — sebi:RKD/VSL-VSL/AO-4/2010. 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.