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2015 (6) TMI 791 - AT - Companies LawPenalty for violation of regulation 8(3) of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997 (SAST) - Whether intention , suspension of trading in exchange and reporting is only for academic purpose, have any impact on the penalty amount imposed by SEBI - Held that:- Obligation to make disclosures under regulation 8(3) of SAST Regulations, 1997 is mandatory and that obligation is not dependent upon any of the circumstances set out hereinabove. Penalty for not making disclosures under regulation 8(3) SAST Regulations, 1997 for the respective year as per section 15A(b) of SEBI Act, 1992 is ₹ 1 lac per day or ₹ 1 crore whichever is lower. In the present case, penalty at the rate of ₹ 1 lac per day for the years 1998 to 2010 would be ₹ 1 crore per year, whereas, the adjudicating officer after considering all mitigating factors set out under section 15J of the SEBI Act, 1992 has imposed composite penalty of ₹ 10 lac for all the years which comes to less than ₹ 1 lac per year. In these circumstances, decision to impose penalty of ₹ 10 lac for all the years cannot be said to be unreasonable or excessive. - Decided against the appellant.
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