sebi:VSS/AO-166/2009
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Facts / Headnote
Violation established; monetary penalty of Rs.5,00,000 imposed payable within 45 days
Provisions invoked
- s. 13
- s. 18
- s. 23
- s. 23H
- s. 23J
- s. 23I
- s. 2(4)
Holding
The Noticee's off-market sale of 4,50,000 shares without receipt of consideration violated sections 2(i) and 13 of the SCRA and attracted penalty under section 23H. A monetary penalty of Rs.5,00,000 was imposed on the Noticee.
Full text
Page 2 of 17 sections and therefore, liable for monetary penalty under section 23H of SCRA. APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 17 to as ”AR”) appeared on behalf of the Noticee and submitted, inter alia, as under: • The consideration for the shares sold through off-market is yet to be paid by the entities who have purchased the shares. In terms of section 2 (i) (a) of SCRA, a spot delivery contract means a contract which provides for actual delivery of securities and the payment of a price therefor within the time specified therein. The provision has two requirements, (1) delivery of securities and (2) payment of price. In the given case, the Noticees have sold shares. They have effected the deliveries to the buyer within the time specified in the said section.
Page 4 of 17 c) If so, what would be the monetary penalty that can be imposed taking into consideration the factors mentioned in section 23J of SCRA?
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Source: SecMarx — sebi:VSS/AO-166/2009. 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.