sebi:VSS/AO-68/2008
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Facts / Headnote
Violation of regulation 11(2) of SAST Regulations established; joint and several monetary penalty of Rs.5,00,000 imposed under section 15H(ii) of SEBI Act
Provisions invoked
- s. 15
- s. 15H
- s. 15J
Regulations
- Reg. 10
- Reg. 8
- Reg. 22
- Reg. 11(1)
- Reg. 11(2)
Parties
- Mr. Krishna Chand Akkineni
- Mr. Mallikharjuna Rao Akkineni
- Mrs. Pushpavati Rao
- Mrs. Anuradha Akkineni
Holding
The Noticees, holding more than 55% but less than 75% in the target company (SSL) and acting in concert, violated regulation 11(2) of SAST Regulations by acquiring additional shares on eight dates in 2005-2006 without making a public announcement, and are jointly and severally liable to a monetary penalty of Rs.5,00,000 under section 15H(ii) of the SEBI Act.
Full text
Page 2 of 12 Mallikarjuna Rao Akkineni, Mrs. Pushpavati Rao and Mrs. Anuradha Akkineni belonged to the (erstwhile) ‘promoter group’ of SSL.
Page 3 of 12 into and adjudge under section 15H(ii) of the SEBI Act the alleged violation of the provisions of regulation 11(2) of SAST Regulations committed by the Noticees.
Page 4 of 12 these shares were purchased from the market only and there were no off-market transactions. d) In the enclosure to the notice, there is one transaction wherein Mrs. A. Pushpavati was shown as part of promoters group and her holdings were shown in the total of the promoters group, consequent on recasting of shareholding pattern. Prior to that she was holding 60,714 equity shares and has been existing shareholder all along and has not acquired any additional share in between. e) Acquisition of additional (25,000) equity shares is not an intentional act done for any benefit or for violating the Regulations. f) The promoters had control over the affairs of the target company even prior to acquisition of the said 25,000 equity shares and have been running the organization ever since the Initial Public Offerings. Further, acquisition of the said shares was not made for substantial of control of the target company or for the purpose of consolidation of holdings of the promoters. There was no intention of consolidating our holding in the company as there was a sale transaction of 6554 shares on May 7, 2006. g) When we had acquired the said shares, price was ranging from Rs.32 to Rs.48. As per the regulations, had we come out the open offer at that time, the shareholder would have got a price of Rs.48 per share. Against this, in the recent open offer made by Sahasra Investments Pvt. Ltd. and others in March, 2008, the shareholders were immensely benefited at the offer pri
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Source: SecMarx — sebi:VSS/AO-68/2008. 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.