sebi:Settlement_Orders_216_Order_Against_Shri_Dinesh_Kumar_Sighania
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Facts / Headnote
Shri Singhania directed to dissociate from capital market and not deal in securities for one year; adjudication proceedings ordered to be initiated for violation of Regulation 7
Provisions invoked
- s. 41(3)
- s. 11
- s. 15
- s. 15A
Regulations
- Reg. 7
- Reg. 6
- Reg. 44
Parties
- D K Singhania
Holding
D K Singhania was held guilty of violation of Regulation 7 of the Takeover Regulations for acquiring shares exceeding 5% with persons acting in concert without disclosure. He was directed to dissociate from the capital market for one year and adjudication proceedings were ordered to be initiated.
Full text
Mega Stocks Ltd. under the said Regulation our Client was not prima facie liable to disclose anything to the target to any other person or authority acting in his capacity as stock broker. 4.0 Hearing 4.1 An opportunity of hearing was given to Shri Singhania on 08.01.2002. However, an adjournment was sought by Shr Hearing was fixed for 12 February 2002 which was adjourned. Subsequently, hearing was fixed for 3 September was clubbed with the hearing in respect of hearing fixed for show cause for off market deals on 25 September 200 Shri Singhania did not appear for hearing nor did he respond.
viii) I find that out of total shareholding of BDMCL acquired by Arun Kumar Bajoria and person(s) acting in concer 9,00,000 shares were transferred to D K Singhania. Further, these shares were not kept with D K Singhania as m Pool account of D K Singhania. In fact, I find that these shares were transferred from the account of Mega Resources beneficiary account of D K Singhania and further were pledged by him with various banks for which an Overdraft obtained by D K Singhania from the banks. Therefore, the contention of D K Singhania that these shares deposite against margin does not hold good. I reject the contention that these shares were purchased by Shri Singhania as a not as an acquirer. ix) As per Regulation 7 an acquirer who acquires shares or voting rights which taken together with the shares or voti any, been held by him would entitle him to 5% or more of the voting rights shall disclose the aggregate of his shar voting rights of the company. In this case, Mr. A K Bajoria and others and Mr. Singhania have acquired shares exceeding 5% on 15 March 2000 and therefore, required to make disclosure to the company in terms of Regulation that no such disclosure was made by Mr. Singhania to the target company as per the said Regulations. Therefore, Singhania guilty of violation of Regulation 7 of the Takeover Regulations. 6.0 ORDER 6.1 Taking into consideration above facts and contentions in exercise of powers under Section 11, 11
5.0 Findings 5.1 I have taken into consideration the show cause notice dated 18 December 2000 documents supplied by letter October 2001 also reply of the advocate of Shri D K Singhania dated 5 November 2001 to the show cause notice. T are as under:
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Source: SecMarx — sebi:Settlement_Orders_216_Order_Against_Shri_Dinesh_Kumar_Sighania. 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.