sebi:VSS/AO-07/2008
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Facts / Headnote
Violation established; monetary penalty imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 7
- Reg. 13
- Reg. 7(3)
- Reg. 13(6)
- Reg. 13(4)
Holding
The Noticee failed to make timely disclosure to BSE regarding sale of 1,00,000 shares on December 19, 2005 and acquisition of 11,12,000 shares on June 28, 2006, thereby violating regulation 13(6) of SEBI (PIT) and regulation 7(3) of SAST, and is liable for monetary penalty. A penalty of Rs.1,00,000 was imposed under section 15A(b) of the SEBI Act.
Full text
Page 2 of 12 the information received under regulation 13(4) and 13(5) of SEBI (PIT). HSE, vide letter dated April 09, 2007 has confirmed that no disclosure was made by the Noticee in this respect. BSE, vide its letter dated March 01, 2007 to SEBI has stated that the Noticee informed BSE on October 30, 2006.
Page 3 of 12 SHOW CAUSE NOTICE, REPLY AND PERSONAL HEARING 6. Show Cause Notice (hereinafter referred to as “SCN”) dated January 4, 2008 was issued to the Noticee under rule 4 of the Rules to show cause as to why an inquiry should not be initiated against it and penalty be not imposed under section 15A(b) of SEBI Act for their failure to comply with the provisions of regulations 13(6) of SEBI (PIT) and regulation 7(3) of SAST.
Page 4 of 12 • It may kindly be noted that in our case there has been no such unpublished price sensitive information which has been held or which has been announced subsequent to the said trading of the shares. This fact can be verified from the site of BSE that there has been no announcement from the company till September 6, 2007. Further, it can also be observed that the price of the share has been fluctuating between Rs.140/- and Rs.118/- per share during May-December 2006 which indicates that there has been no volatility in the trading due to the change in the shareholding as a result of transfer of 11,12,000 shares from Mr. K Srinivas to Dr Koteswara Rao.
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Source: SecMarx — sebi:VSS/AO-07/2008. 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.