Penalty upheld under SEBI Act Section 15A(b) for failure to disclose share purchases under PIT Regulations 13(4), 13(4A), 13(5)

The SAT upheld the penalty under section 15A(b) of the SEBI Act against the appellant for failing to make mandatory disclosures to the stock exchange regarding share purchases, violating Regulation 13(4), 13(4A), and 13(5) of the PIT Regulations, 1992. The appeal was dismissed, following the precedent set in a similar case involving another promoter/director of the same company. No costs were ordered.

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The Securities Appellate Tribunal (SAT) upheld a penalty of Rs. 11 lakh imposed under section 15A(b) of the Securities and Exchange Board of India Act, 1992 on the appellant, a promoter/director of Brijlaxmi Leasing and Finance Company Ltd. The penalty arose from violations of Regulation 13(4) and 13(4A) read with Regulation 13(5) of the SEBI (Prohibition of Insider Trading) Regulations, 1992, for failure to disclose share purchases on multiple dates as mandated. The Tribunal noted the appellant's repeated non-compliance with disclosure obligations and relied on its reasoning in a similar case (Appeal no. 434 of 2014 involving another promoter/director of the same company), stating: "Accordingly for the reasons stated in our decision in Appeal no.434 of 2014, we uphold the penalty imposed under section 15A(b) of the SEBI Act." The appeal was dismissed with no order as to costs.

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