TMI Blog2020 (2) TMI 868X X X X Extracts X X X X X X X X Extracts X X X X ..... . Mukesh Kothari became a proclaimed offender and was facing criminal prosecution. So far as the claim of the present appellant is concerned, it was found that the appellant had pledged his personal fixed deposits to the Union Bank of India for advances made to Solid Carbide Tools Ltd. Since the loan was not repaid by this Company, the bank invoked the said deposit for adjusting outstanding claim and, thus, the appellant had become the creditor of the said Solid Carbide Tools Ltd. These facts would show that the appellant was the creditor of Solid Carbide Tools Ltd. of which Mr. Kothari was the promoter and chairman. Mr. Kothari remained a proclaimed offender since 2001 upon proclamation by the concerned criminal court. According to the respondent SEBI, the appellant had acquired 4,84,000 shares of the present Company from said Mr. Kothari. According to the appellant, the shares were handed over to him in the year 2001 which ultimately could be transferred in his name in the year 2013 as detailed above. The record would further show that the present Company also remained defunct from the year 2000 and even the trading in the same is suspended by the BSE. The print out of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f India imposing a penalty of ₹ 3 lakhs on the appellant for violation of the relevant provisions of Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992 (hereinafter referred to as 'PIT Regulations) and Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as 'SAST Regulations, 1997) and Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as 'SAST Regulations, 2011) the present appeal is preferred. 2. According to the respondent Securities and Exchange Board of India (hereinafter referred to as 'SEBI') the appellant on November 15, 2000, had acquired through off market transaction, 4,84,000 shares of Finalysis Credit Guarantee Company Limited (hereinafter referred to as 'the Company'). It was representing 8.79% of the total paid up capital of the Company. In the circumstances he was required to make disclosure of the same to the Company under Regulation 7(1) of the SAST Regulations, 1997 within four working days of such acquisition. Similarly, he was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shares remained in his demat account till 25th July, 2013. However, a gang of one Abdul Zameer Hakim had under duress forced him to transfer the shares in off market transfers in the following manner. Date No.of shares Transferee 26-7-2013 1,00,000 Abdul Zameer Hakim 26-7-2013 2,00,000 Talat Wahdatali Mahmood 26-7-2013 1,00,000 Rehana Khan 7-8-2013 84,000 Wahadatali Gulamrasool Khan 4. After this forcible transfer, the appellant made the disclosure of the same to the Compliance Officer of the Company namely Mr. Sarkhot on the very same day. Mr. Sarkhot however filed a disclosure on August 5, 2013. The transfer was effected on July 27, 2013 which was a Friday. After holiday of two days the disclosure was filed by him on August 5, 2013 after the second transfer dated August 7, 2013 took place. Further, Mr. Sarkhot did not notify the disclosure under Regulation 13 (4A) read with Regulation 13(5) of PIT Regulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed offender and was facing criminal prosecution. So far as the claim of the present appellant is concerned, it was found that the appellant had pledged his personal fixed deposits to the Union Bank of India for advances made to Solid Carbide Tools Ltd. Since the loan was not repaid by this Company, the bank invoked the said deposit for adjusting outstanding claim and, thus, the appellant had become the creditor of the said Solid Carbide Tools Ltd. These facts would show that the appellant was the creditor of Solid Carbide Tools Ltd. of which Mr. Kothari was the promoter and chairman. Mr. Kothari remained a proclaimed offender since 2001 upon proclamation by the concerned criminal court. According to the respondent SEBI, the appellant had acquired 4,84,000 shares of the present Company from said Mr. Kothari. According to the appellant, the shares were handed over to him in the year 2001 which ultimately could be transferred in his name in the year 2013 as detailed above. The record would further show that the present Company also remained defunct from the year 2000 and even the trading in the same is suspended by the BSE. The print out of the trading data of the Company ..... X X X X Extracts X X X X X X X X Extracts X X X X
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