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2017 (5) TMI 662 - SECURITIES APPELLATE TRIBUNAL, MUMBAIViolation of various provisions of SAST Regulations of 1997 and 2011 read with Regulation 13(1) of Prohibition of Insider Trading Regulations, 1992 - Penalty imposed - Held that:- AO has not brought out any convincing and cogent evidence to support the finding that the noticee i.e. appellant acted as a PAC with Narois within the meaning of Regulation 2(e)(2)(i) of SAST Regulations, 1997. There is no material / evidence which can support the present findings of the learned AO. In fact, to some extent the learned AO has travelled even beyond the scope of show cause notice dated October 1, 2014. Therefore, we are constrained to hold that the learned AO has not satisfactorily examined and considered the contentions of the appellant raised during the proceedings before him, particularly pertaining to the question of ‘person acting in concert’ i.e. PAC for holding the appellant liable for violation of Section 7(1) of the SAST Regulations, 1997 read with Regulation 35 of SAST Regulations, 2011. In this view of the matter, penalty of ₹ 2,50,000/- imposed on appellant is set aside and restored to the file of learned AO for hearing this aspect afresh and deciding it as per law after giving an opportunity of hearing to the appellant in respect of the allegation under the SAST Regulations, 1997 read with those of 2011. Accordingly, the impugned order is upheld to the extent of imposition of two penalties of ₹ 2,00,000/- each for violation of Sections 11C(3) and (5) of the SEBI Act, 1992 whereas the penalty of ₹ 2,50,000/- under SAST Regulations, 1997 is set aside and the matter is remanded to the learned AO for a fresh look as directed hereinabove. The appellant is directed to deposit the penalty of ₹ 4,00,000/- within a period of four weeks from today failing which the respondent shall be at liberty to initiate appropriate proceedings to recovery of the said amount as per law.
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