sebi:VSS/AO-47/2008
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Facts / Headnote
Penalty imposed on Noticee for violation of SAST Regulations
Provisions invoked
- s. 15A
- s. 15
- s. 15J
Regulations
- Reg. 6
- Reg. 8(3)
- Reg. 6(2)
- Reg. 6(4)
- Reg. 8(1)
Parties
- J.K. Jute Mills Company Ltd.
Holding
The Noticee violated regulations 6(2), 6(4) and 8(3) of SAST Regulations by failing to make timely disclosures, and is liable for a monetary penalty of Rs. 50,000 under section 15A(b) of the SEBI Act.
Full text
Page 2 of 14 2. Upon examination of the offer document pertaining to the aforesaid open offer and based on the information furnished by M/s Chartered Capital and Investment Limited, New Delhi, Manager to the aforesaid open offer, it was alleged that, Noticee had failed to comply with regulation 6(2) and 6(4) for the financial year 1997 and 8(3) for the financial years ended 1998, 1999, 2000, 2001, 2002, 2003, 2004 and 2005 of SAST Regulations. The details of alleged violation of regulations of SAST Regulations by the Noticee are as under:-
Page 3 of 14 APPOINTMENT OF ADJUDICATING OFFICER 4. The undersigned was appointed as Adjudicating Officer under section 15 I of SEBI Act read with rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Rules’) vide order dated April 09, 2008 to inquire into and adjudge under section 15A(b) the alleged violation of regulations 6(2), 6(4) and 8(3) of SAST Regulations. SHOW CAUSE NOTICE, HEARING AND REPLY
Page 4 of 14 8. Meanwhile, the Noticee vide letter dated October 18, 2008 replied to the SCN. The summary of the submissions are as under : • The company owned originally by J. K. Group with promoter Group holding 87.63%.shares and engaged in manufacturing of jute products in its unit situated in vicinity of city Kanpur, was suffering losses due recession in jute industry, intermittent labour unrest, uneconomic location at a place far away from jute growing areas, unorganized factory layout due to limited space available, worn out machinery conditions etc.Due to continuous losses the unit became sick with its total erosion of net worth by accumulated losses and it has to registered during 1994 with BIFR vide case no 149/1994 under Sick Industrial (Special Provisions) Companies Act, 1985 for taking rehabilitation measures by the BIFR which is still pending before them. A copy of BIFR
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Source: SecMarx — sebi:VSS/AO-47/2008. 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.