2015 (7) TMI 540

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 15A(b) of the Securities and Exchange Board of India Act, 1992 ("SEBI Act, 1992" for short) for non disclosures made on two occasions i.e., on March 4, 2013, June 28, 2013 regarding acquisition of shares of Raj Packaging Industries Limited ("RPIL" for short) under Regulation 29(2) read with Regulation 29(3) of the Securities and exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 2011 ("SAST Regulations, 2011" for short) and Regulation 13(3) read with Regulation 13(5) of the Securities and Exchange Board of India (Prevention of Insider Trading) Regulations, 1992. For the sake of convenience these provisions are reproduced herein below:- "Relevant provisions of PIT Regulations, 1992:- D....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... within two working days of the receipt of intimation of allotment of shares, or the acquisition of shares or voting rights in the target company to,- (a) every stock exchange where the shares of the target company are listed; and (b) the target company at its registered office." 2. Briefly stated the facts of the case are that the appellant is an individual investor and was having 8.46% equity shares of RPIL as on December 31, 2012. He, however, does not form part of the promoter group of the company. Respondent conducted an investigation into certain alleged irregularities in the trading of the shares of RPIL for a period from January 17, 2013 to September 17, 2013. During the investigation, it was revealed that the a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nything out of such delayed disclosures. 5. On the contrary, Mr. Kumar Desai, learned counsel alongwith Mr. Tomu Francis, appearing on behalf of the respondent vehemently defended the impugned order dated March 20, 2014, imposition of a penalty of Rs. 10 lac on the appellant, on the ground that the appellant had earlier been also found guilty of making similar violation of the provisions of SAST Regulations, 2011 and Regulations 13(1) & 13(3) read with Regulation 13(5) of the PIT Regulations. A Show Cause Notice dated April 2, 2013 was issued to the appellant and after holding inquiry as per the provisions of SEBI Act, 1992 read with Rule 5 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995....