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2019 (10) TMI 1049 - AT - SEBIBelated disclosures under the PIT and SAST Regulations - an attempt was made to justify the disclosures made belatedly on the strength that the appellants were unaware of the sale of its shares made by the lenders and that the delay if any, was thus, liable to be condoned - penalty of ₹ 40 lacs imposed for violation of Regulations 13(3), 13(4), 13(4A) and 13(5) of SEBI ‘PIT Regulations’ read with Regulations 29 and 31 of the Securities and Exchange Board of India ‘SAST Regulations’ - HELD THAT:- Appellants were duty bound to make the necessary disclosures within the stipulated period under the PIT and SAST regulations. Non-disclosures within the stipulated period violated the provisions of the aforesaid regulations and, consequently, the penalty became leviable. Thus, to that extent, the order of the AO holding the appellants guilty of violating the provisions of the PIT and SAST Regulations cannot be faulted and is upheld. Considering the factors enumerated under Section 15J of the SEBI Act, we find that there was no disproportionate gain or unfair advantage gained by the appellants as a result of the default nor anything has come on record to indicate that the delayed disclosures resulted in a loss caused to an investor. However, considering the repetitive nature of the default and the fact that the company has now been wound up and taking into consideration all the facts and circumstances of the case, we think that in the larger interest of justice, the quantum of penalty should be reduced from ₹ 40 lacs to ₹ 30 lacs would meet the ends of justice.
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