sebi:SO/SBM/EAD-1/01/2019
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Facts / Headnote
Settled
Regulations
- Reg. 17
- Reg. 13(3)
- Reg. 29
- Reg. 15(1)
- Reg. 13(5)
- Reg. 29(2)
- Reg. 29(3)
- Reg. 3(1)
Parties
- Mr. Saket Agarwal
Holding
In terms of Regulation 15(1) of the Settlement Regulations, 2014, the adjudication proceedings initiated against Mr. Saket Agarwal vide SCN dated December 22, 2017 are disposed of via summary settlement upon remittance of Rs. 2,80,500, without admitting or denying the findings of fact and conclusions of law.
Full text
Page 1 of 5 BEFORE THE ADJUDICATING OFFICER SECURITIES AND EXCHANGE BOARD OF INDIA SETTLEMENT ORDER (Application No. 3537/2018) On the application submitted by Mr. Saket Agarwal (PAN: ABXPA8150D) Settlement Order No: SO/SBM/EAD-1/01/2019
Page 2 of 5 purchase of shares. The total share capital of the Company as on June 2014 was 50,01,700 shares. b. Based on a reference received from BSE regarding alleged non- disclosure by Mr. Saket Agarwal about decrease in his shareholding in the Company during the period July 04, 2014 to August 11, 2014, SEBI conducted an examination into the trading/dealings in the scrip of ALFL during the period January 01, 2013 to October 31, 2014 (hereinafter referred to as ‘relevant period’/ ‘examination Period’). c. From the details of the shareholding of ALFL w.r.t shareholders belonging to the category of Public holding more than 1% of the total share capital of ALFL, which was submitted to the BSE by the Company, it was observed that the applicant was holding 4,49,800 shares of ALFL (constituting 8.99% of total no. of shares of the ALFL) at the end of the quarter April - June, 2014. Further, the applicant had sold 2,09,800 shares (constituting 4.19% of the total shares) during the period of July 10, 2014 to September 12, 2014. d. By virtue of the above said sale transactions, there was a change in the shareholding of the applicant which had exceeded the prescribed threshold limit of 2% of the total shareholding of the Company as on August 1, 2014. Therefore, in terms of Regulation 29 (2) read with Regulation 29 (3) of the SAST Regulations, the applicant was under an obligation to make the necessary disclosure for the above said change in shareholding pursuant to change in his share
Page 3 of 5 the requisite disclosures under Regulation 29(2) read with Regulation 29(3) of SAST Regulations, to the stock exchange and the company. Therefore, it is alleged that the applicant, by failing to make the disclosures to the stock exchange and the company, has violated the provisions of Regulation 29(2) read with Regulation 29(3) of SAST Regulations e. Similarly, in terms of Regulation 13(3) r/w 13(5) of the PIT Regulations, applicant was under an obligation to make the necessary disclosure for the above said change in shareholding in ALFL. The said disclosure was required to be made by the applicant to the company within two working days from August 1, 2014 i.e. the date when the threshold limit had crossed the prescribed limit of 2%. It is alleged that applicant had failed to make the requisite disclosures under Regulation 13(3) read with Regulation 13(5) of the PIT Regulations to the Company. Therefore, it is alleged that the applicant, by failing to make the necessary disclosures to the Company, has violated the provisions of Regulation 13(3) read with Regulation 13(5) of PIT Regulations.
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Source: SecMarx — sebi:SO/SBM/EAD-1/01/2019. 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.