sebi:VSS/AO-14/2009
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Facts / Headnote
Violations of regulation 7(1A) read with 7(2) and regulation 11(1) of SAST established; total penalty of Rs.1,25,000 imposed; violation of regulation 13(4) read with 13(5) of PIT established but no monetary penalty imposed for it
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 7
- Reg. 6
- Reg. 11
- Reg. 3
- Reg. 10
- Reg. 11(1)
- Reg. 13(4)
- Reg. 3(1)(e)
Parties
- Dr K Koteswara Rao
Holding
The Noticee's delayed disclosure of acquisition of 11,12,000 shares violated regulation 7(1A) read with 7(2) of SAST and his failure to make a public announcement for acquisition exceeding the 5% creeping limit violated regulation 11(1) of SAST, attracting penalty of Rs.25,000 under section 15A(b) and Rs.1,00,000 under section 15H(ii); violation of regulation 13(4) read with 13(5) of PIT was established but no monetary penalty was imposed for it.
Full text
Page 2 of 17 Regulations, 1997 (hereinafter referred to as “SAST”) with regard to his acquisition of 11,12,000 shares (7.40% of the paid-up capital of TBL) from his son Mr. K Srinivas through off-market in June 2006 on July 5, 2006, which is allegedly not in compliance with the said regulations. It was also alleged that Dr. K Koteswara Rao had failed to make a public announcement under regulation 11(1) of SAST with regard to his acquisition of 11,12,000 shares (7.40% of the paid-up capital of TBL) from his son Mr. K Srinivas through off- market in June 2006. Consequently, it was alleged that he was liable for penalty under sections 15A(b) and 15H of Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”).
Page 3 of 17 4. The Noticee vide letter dated October 29, 2008 replied to the SCN and also sought personal hearing in the matter.
Page 4 of 17 e) If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in section 15J of SEBI Act?
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Source: SecMarx — sebi:VSS/AO-14/2009. 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.