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2015 (4) TMI 23 - AT - Companies LawViolation of Regulation 8(3) of SEBI SAST(Substantial Acquisition of Share and Takeovers) Regulations, 1997 - Inadvertent non compliance - Appellant on his own approached SEBI on non compliance Held that:- We note that the appellant on his own approached SEBI on becoming aware of the technical violation in question and asked for consent proceedings which, somehow, could not materialize. Be that as it may. We have given our thoughtful consideration to the whole matter and we note that the basic purpose of SAST Regulations, 1997 (now Substantial Acquisition of Share and Takeovers Regulations, 2011) including that of regulation 8(3), is to make a company law abiding and compliant. In the present case, learned counsel for the appellant, Shri Sunil Humbre has stated that the company shall file proper disclosure to the stock exchanges within a period of two weeks although it is claimed that such disclosures have already been made in the past. In addition, we also note the conduct of appellant in approaching SEBI on its own and thereby bringing the violation in question to the notice of SEBI. In the peculiar facts and circumstances of the case, therefore, we are convinced that ends of justice would be met with by disposing of this appeal with a direction to the appellant to make the required disclosure to the stock exchanges in question as per the Regulation 8(3) of the SAST Regulations, 1997 on or before November 17, 2014. On furnishing the required disclosure, the penalty of ₹ 9 lac imposed on the appellant shall stand modified to ₹ 5 lac to be deposited by the appellant with SEBI within a period of one month thereafter. In case the appellant does not make appropriate disclosure by November 17, 2014, the original penalty against the company shall revive.
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