sebi:VSS/AO-28/2009
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Facts / Headnote
Penalty imposed on Noticee for failure to make disclosures under SAST regulations 6(3) and 8(2)
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 6
- Reg. 2(1)(c)
- Reg. 2(1)
- Reg. 8(2)
- Reg. 6(3)
Parties
- Nimish Kantilal Unadkhat
Holding
The Noticee, as a director of YSL, was a 'person having control over a company' under regulation 2(1)(c) of SAST and was therefore obligated to make disclosures under regulations 6(3) and 8(2) of SAST, which he failed to do for the year 1997 and financial years 1998-2002 and 2004-05. A penalty of Rs.1,00,000 was imposed under section 15A(b) of the SEBI Act.
Full text
Page 2 of 15 2. Upon examination of the offer document pertaining to the aforesaid open offer, it was alleged that, Mr. Nimish Kantilal Unadkhat (hereinafter referred to as “Noticee”) had failed to comply with regulation 6(3) of SAST for the year 1997 and regulation 8(2) of SAST for the financial years 1998 to 2002 and 2004-05 and consequently, liable for monetary penalty under section 15A (b) of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”). APPOINTMENT OF ADJUDICATING OFFICER
Page 3 of 15 identifiable promoters. The Company, I understand, was advised at that point of time that since there are no promoters and since the directors did not exercise control over the Company, the relevant regulations of 6(3) and 8(2) of SAST were not applicable to the Company.”
Page 4 of 15 i. Whether the Noticee had violated regulation 6(3) of SAST for the year 1997 and 8(2) of SAST for the financial years 1998 to 2002 and 2004-05?
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Source: SecMarx — sebi:VSS/AO-28/2009. 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.