sebi:SD/AO/147/2009
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Facts / Headnote
Violation established; monetary penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 13(3)
Parties
- Shri Arunkumar Ramanlal Choksi
Holding
The Noticee violated Regulation 13(3) read with 13(5) of the PIT Regulations by failing to disclose a change exceeding 2% resulting in holding falling below 5% in FTEL, and a penalty of Rs. 1,00,000 under Section 15A(b) of the SEBI Act was imposed.
Full text
Page 2 of 9 2. As per the Investigation Report (hereinafter referred to as IR) Shri Arunkumar Ramanlal Choksi (hereinafter referred to as the ‘Noticee’) alleged to have violated the Regulation 13(3) read with 13(5) of the SEBI (Prohibition of Insider Trading) Regulation, 1992 (hereinafter referred to as the ‘PIT Regulations’) for which the adjudication proceeding has been initiated and therefore, the Noticee is liable for monetary penalty for the alleged violations, as prescribed under section 15A(b) of the Securities and Exchange Board of India Act,1992 (hereinafter referred to as ‘SEBI Act’).
Page 3 of 9 5. Thereafter, considering the principles of natural justice and material available on record it was decided by the undersigned to conduct an inquiry in the instant matter for which an opportunity of personal hearing was given to the Noticee. The Noticee was advised by the undersigned to attend the said personal hearing on August 07, 2009. However, the Noticee did not appear before the undersigned. However, the Noticee sought another date of hearing for appearance vide letter dt. 4th August,
Page 4 of 9 c. If, yes what should be the quantum of monetary penalty ? 7. The relevant provisions of regulations alleged to have violated by the Noticee and the respective penal provisions of the SEBI Act which inter alia reads as under : PIT Regulations : Disclosure of interest or holding by directors and officers and substantial shareholders in a listed companies - 13. (1) … … … (2) … … … (3) Any person who holds more than 5% shares for voting rights in any listed company shall disclose to the company in Form C the number of shares or voting rights held and change in shareholding or voting rights, even if such change results in shareholding falling below 5%, if there has been change in such holdings from the last disclosure made under sub- regulation (1) or under this sub-regulation; and such change exceeds 2% of total shareholding or voting rights in the company (4) .… … … (5) The disclosure mentioned in sub-regulations (3) and (4) shall be made within 4 working days of :
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Source: SecMarx — sebi:SD/AO/147/2009. 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.