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2015 (10) TMI 267 - AT - Companies LawValidity of penalty imposed under Section 15A(b) and 15HB of Securities Exchange Board of India Act – Appellant contends that there wasn’t any intention on his part to suppress purchase and sale of shares – Appellant holds that failure to make disclosure has not resulted in any profit for him or loss to the investors and was simply an inadvertent error with no malafide intention -– Appellant further contends that violation is not repetitive in nature and the Adjudicating Officer is not justified in imposing the penalty of ₹ 5 lac and ₹ 2 lac under section 15A(b) and 15HB – Appellant drafted a compilation to show that the company has been making losses so the penalty should substantially be reduced. Held That:- There was seen no merit in the contentions of the Appellant - Disclosures have not at all been made, still the Adjudicating Officer has imposed a penalty of ₹ 5 lac and ₹ 2 lac under Section 15A(b) and Section 15HB instead of ₹ 1crore which cannot be said to be excessively harsh or unreasonable – Penalty is imposable irrespective of the fact that the company/promoter-director have been incurring losses or not - Omission on the part of the appellant was detrimental to the interest of the investors and hence no fault can be found with the decision of SEBI – Decided in favour of the Respondent.
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