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2015 (7) TMI 494 - SECURITIES APPELLATE TRIBUNAL MUMBAIPenalty for violation of regulation 7(1A) & 7(2) of SAST Regulations, 1997 - Violation of regulation 8(1) and 8(2) of SAST Regulations, 1997 - Violation of regulation 30(2) & 30(3) of SAST Regulations, 2011 - Non disclosure of sale transaction - Failure to make yearly disclosures - Held that:- Under SAST Regulations, 1997 as also under SAST Regulations, 2011 disclosures are liable to be made within specified days irrespective of the scrip being traded on the Exchange or not. Similarly, disclosures have to be made irrespective of whether investors have suffered any loss or not on account of non disclosure within the time stipulated under those regulations. In the present case, violation under regulation 7(1A) read with regulation 7(2) of SAST Regulations, 1997 relates to the sale transaction that took place on April 30, 2004. As against the obligation to make disclosure on May 2, 2004 under regulation 7(1A) read with regulation 7(2) of SAST Regulations, 1997, admittedly, disclosure has been made on January 2, 2013 i.e., after delay of 3167 days. Similarly, as per regulation 8(1) read with regulation 8(2) of SAST Regulations, 1997 appellant holding more than 15% shares of the target company was obliged to make yearly disclosure to the company within the period specified therein. Admittedly, during the period 2002 to 2011 appellant had failed to make yearly disclosures and disclosures were made belatedly on January 2, 2013 for all the years from 2002 to 2011. Since the delay in making disclosures under regulation 8(1) read with regulation 8(2) of SAST Regulations, 1997, ranged from 3909 days to 622 days. Similarly, regulation 30(2) read with regulation 30(3) of SAST Regulations, 2011 requires yearly disclosure to be made by promoters and persons acting in concert to the Stock Exchange within 7 working days from the end of the financial year. Admittedly, disclosure under regulation 30(2) read with regulation 30(3) of SAST Regulations, 2011 was made on January 2, 2013 which was delayed by 265 days. - Decided against the appellant.
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