sebi:WTMN/49/CFD/7/04

SEBI · SEBI · 2003-09-13 · T. M. Nagarajan, Whole Time Member

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Facts / Headnote

Direction to initiate adjudication proceedings against the Acquirers for not having made full disclosures under Regulation 3(1)(c) and for delay in filing the report under Regulation 3(4); no action directed for violation of Regulation 11(1).

Provisions invoked

• s. 19
• s. 81

Regulations

• Reg. 11
• Reg. 3
• Reg. 10
• Reg. 12
• Reg. 5
• Reg. 44
• Reg. 14(1)
• Reg. 11(1)
• Reg. 3(4)
• Reg. 2(c)
• Reg. 3(1)(c)
• Reg. 45(6)
• Reg. 3(1)

Parties

• Shri Badrinarayan B Somani & persons acting in concert (PACs)

Holding

The WTM directed that adjudication proceedings be initiated against the Acquirers for not having made full disclosures as required under the then provisions of Regulation 3(1)(c) and for delay in filing the report under Regulation 3(4), but declined to take action for violation of Regulation 11(1) in view of mitigating factors.

Full text

Home » Enforcement » Orders » Orders of Chairman/Members Enforcement Enforcement▼ Order against Abee Info- Consumables Ltd Jul 02, 2004 | Orders : Orders of Chairman/Members SECURITIES AND EXCHANGE BOARD OF INDIA

equity shares representing 53.28% of the enhanced voting capital of Abee Info-Consumables Ltd. (hereinafter referred to as “the Target company”) by way of preferential allotment made on 11.09.02. Pursuant to the aforesaid preferential allotment, the shareholding of the Acquirers increased from 30.67% to 67.11% shares in the Target company. 1.2 The shares of the Target company are listed at Pune Stock Exchange, The Stock Exchange, Mumbai and Ahmedabad Stock Exchange. 2.0 SHOW CAUSE NOTICE 2.1 As the aforesaid acquisition was, prima facie, found to be in violation of Regulation 11(1) read with 14(2) of the Regulations, a show cause notice dated 04.12.03 was issued to the Acquirers inter alia stating that: the exemption under regulation 3(1)(c) of the acquisition from the applicability of Regulation 11(1) of the said Regulations may not be available to the Acquirers since the provisions of Regulation 3(1)(c) were deleted effective 09.09.02. a public announcement to acquire a minimum of 20% shares from the shareholders of the Target company should have been made by the Acquirers in terms of the said Regulations, within 4 working days from the date of 11.09.02. why, therefore, one or more or all action(s) under Regulation 44 and Regulation 45(6) of the said Regulations and Sections 11 and 11B of the SEBI Act 1992, should not be initiated against the Acquirers for violations of the provisions of the said regulations. 3.0 REPLY OF THE ACQUIRERS 3.1 The Acquirers submitted their repl

4.0 HEARING 4.1 An opportunity of personal hearing was availed by the Acquirer on 11.03.04 and they made submissions reiterating their earlier written reply dated 15.01.04. 5.0 CONSIDERATION OF ISSUES 5.1 I have carefully considered the facts of the case, the written as well as oral submissions made by the Acquirers and also the documents submitted by the Acquirers in support of its

Source: SecMarx — sebi:WTMN/49/CFD/7/04. 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.