sebi:SRP/RK/AO-91/2010
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Facts / Headnote
Violation established; penalty of Rs.25,000 imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 13
- Reg. 13(6)
- Reg. 13(4)
Parties
- MMGL
Holding
The Noticee violated regulation 13(6) of the PIT Regulations by failing to timely disclose to BSE and NSE the acquisition of shares on September 29, 2009 by its Managing Director, and is liable to a penalty of Rs.25,000 under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 6 3. Vide letter dated December 24, 2009, Shri Ashok Doshi informed SEBI that he had made the required disclosures, in the prescribed format, to the Company under regulation 13(4) of the SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as ‘PIT Regulations’) on September 30, 2009 for further disclosure to the stock exchanges. However, NSE and BSE vide their communication to SEBI dated November 10, 2009 and November 30, 2009 respectively, have stated that the Company has not made the required disclosures to them regarding the aforesaid acquisition within the prescribed time.
Page 3 of 6 hearing on June 28, 2010 vide notice dated June 10, 2010. Ms. Priyanka Manawat, company secretary and compliance officer of MMGL attended the hearing on behalf of the Noticee and made written and oral submissions. The submissions made by the Noticee are mainly to the following effect : • Mr. Ashok Doshi, Managing Director of the company, had acquired 45,000 shares on September 29, 2009 from his spouse Mrs. Aruna Doshi and the Company had received necessary disclosures, as stipulated under PIT Regulations, from Mr. Ashok Doshi and his spouse Mrs. Aruna Doshi on September 30, 2009.
Page 4 of 6 10. It is observed from the documents available on record that Shri Ashok Doshi was the Managing Director of the Company during the relevant period and was holding 5.52% shares/voting rights in MMGL. On September 29, 2009, he further acquired 45,000 shares of the Company for a total consideration of Rs.12, 08,550/-. Thus, he was required to make disclosures under regulation 13(4) of the PIT Regulations to the company and to the concerned stock exchanges.
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Source: SecMarx — sebi:SRP/RK/AO-91/2010. 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.