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2015 (11) TMI 29 - AT - Companies LawPenalty imposed under Section 15H(ii) of SEBI Act, 1992 – Public Offer and Open Offer under Regulations 10 and 12 of Takeover Regulation 1997 – Delay of 89 days – Appellant contends that Regulation 24(1) requires merchant banker to ensure arrangements for funds before public announcement and finances were organised within 85 days thus open offer was rightly made on 89th day – Held That:- Very purpose of public offer would be frustrated if acquirers are given opportunity to make P.A. after a long lapse of time – There has been a definite prejudice to shareholders in matter of exercising their statutory rights - Time limit of 4 days prescribed in Regulation 14(1) is crucial and important - Monetary penalty of ₹ 8 lakh imposed under section 15H(ii) is not disproportionate as compared to maximum penalty of ₹ 25 crore imposable for such a violation - Any offer made by an acquirer after statutory time limit of 4 days prescribed in Regulations 14(1) would not amount to sufficient compliance of Takeover Regulations – Decided in favour of Revenue.
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