sebi:SVKM/AO/28/2015-16

SEBI · SEBI · 2013-04-03 · S. V. Krishnamohan, Chief General Manager & Adjudicating Officer

Reviewed by Varun Matlani, Advocate — Securities Lawyer practicing in SAT and SEBI

Facts / Headnote

Violation of Regulation 13(4) of PIT Regulations, 1992 held established; penalty of Rs 6,00,000 imposed under Section 15A(b) of SEBI Act; no violation of Regulation 13(3).

Provisions invoked

• s. 15A
• s. 15I
• s. 15J

Regulations relied on

• SEBI (PIT) Regulations, 1992 — 13(4)

Parties

• Chirag Shah

Holding

The Adjudicating Officer held that Chirag Shah, as Director of Splash Media and Infra Ltd, violated Regulation 13(4) of the PIT Regulations, 1992 by failing to disclose in Form D to SMIL and BSE the change in his shareholding from 6.03% to zero, but did not violate Regulation 13(3). A monetary penalty of Rs 6,00,000 under Section 15A(b) of the SEBI Act, 1992 was imposed for the Regulation 13(4) violation.

Full text

Adjudication Order against Chirag Shah in the matter of proposed Rights Issue of Splash Media and Infra Ltd Page 2 of 9 SMIL triggering a disclosure obligation under Regulations 13(3) and 13(4) of SEBI (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as “PIT Regulations,”). It was also observed that noticee had not disclosed change in his shareholdings in i) Form C to SMIL and ii) Form D to SMIL and BSE in terms of Regulations 13(3) and 13(4) of PIT Regulations. APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order against Chirag Shah in the matter of proposed Rights Issue of Splash Media and Infra Ltd Page 3 of 9 Served". Copy of the said SCN was again sent to the last known address of the noticee by the mode of Registered Post Acknowledgement Due vide letter dated September 04, 2014. However, the letter alongwith the copy of said SCN also returned undelivered with the comment “Left”. Thereafter, in terms of Rule 7 of the Adjudication Rules, copy of the said SCN was sent for affixture to the last known address of the noticee vide letter dated October 16, 2014. The said SCN was affixed on the last known address of the noticee on March 09, 2015 and Report of service of notice was obtained from SEBI Local Office, Indore. However, no reply to the SCN was submitted by the noticee within the time prescribed in the SCN.

Adjudication Order against Chirag Shah in the matter of proposed Rights Issue of Splash Media and Infra Ltd Page 4 of 9 b. Does the violation, if any, attract monetary penalty under section 15A (b) of SEBI Act, 1992? Issue I - Violation of provisions of Regulations 13(3) and 13(4) of PIT Regulations, 1992

Source: SecMarx — sebi:SVKM/AO/28/2015-16. 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.