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 imposed under section 15A(b) of the SEBI Act for failure 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 appellant, a promoter/director of the company, was found similarly situated to a previously decided case. The appeal was dismissed with no order as to costs.

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The Securities Appellate Tribunal (SAT), Mumbai, upheld a penalty of Rs. 5 lakh imposed under section 15A(b) of the SEBI Act, 1992 on the appellant, a promoter/director of Brijlaxmi Leasing and Finance Company Ltd, for violating Regulation 13(4), 13(4A) read with 13(5) of the SEBI (Prohibition of Insider Trading) Regulations, 1992. The appellant failed to make mandatory disclosures to the stock exchange regarding share purchases on 8-Oct-12, 19-Dec-12, and 20-Dec-12. The Tribunal noted the similarity with Appeal no. 434 of 2014 involving another promoter/director of the same company, which was dismissed. Relying on the reasoning in that appeal, the Tribunal "uphold[ed] 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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