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2018 (8) TMI 742 - AT - Companies LawLevy of penalty for violation of SEBI laws - Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (‘PFUTP Regulations, 2003’ for short). - Held that:- The misleading corporate announcements are not in dispute and are found to be violative of the relevant regulations as upheld by this Tribunal. Though, thereafter, Jayesh Shah appeared before the AO and submitted that he would provide details to show that he was not a promoter neither did he provide any details, nor has he appealed against the order which is impugned in these appeals. Such a long period of filing before the stock exchange by a listed company cannot be an oversight or mistake but what is more interesting about the filing is that in some of the filing (for the quarter ending February 31, 2004) these three names i.e. Jayesh Shah, Tushar Shah and Parag Shah were shown both in the promoter and non-promoter category. We do not consider that this is an inadvertent omission or error rather we hold that these are clever steps taken by the company and the promoters, including the appellants herein to deliberately mislead the public. In fact, if the appellants could produce documents relating to how they happened to hold the admitted 40 lakh shares of PCL each that could have been to their advantage. The very fact that they are unwilling to produce any documents relating to the same is sufficient to prove that the appellants are not forthright in their stand. Given the admitted fact that none of the appellants in the matter of PCL, including the appellants herein, has provided details of acquisition cost etc to SEBI, the finding in the impugned order that ₹ 24 lakh profit has been made cannot be faulted. Similarly, as against the maximum of ₹ 25 crore each imposable under Section 15HA of SEBI Act the penalty imposed is only ₹ 72 lakh each which cannot be faulted.
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