RUKMANI METALS AND GASEOUS LTD Vs. CHAIRMAN SECURITIES AND EXCHANGE BOARD OF INDIA
SECURITIES APPELLATE TRIBUNAL
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(1.) THE present appeal arises against the order passed by the Adjudicating Officer on 18.7.2002, against the Appellant, imposing monetary penalty of one lakh rupees holding the Appellant guilty of non compliance of the requirements of reporting in terms of regulation 8(3) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (the Takeover Code). THE Respondent vide order dated 26.3.2002 had appointed an Adjudicating Officer to inquire into and adjudge under section 15A(b) of the Securities and Exchange Board of India Act, 1992 (SEBI Act) the contravention of regulation 8(3) of the Takeover Code, allegedly committed by the Appellant with reference to the financial year ended on 31.3.2001.
(2.) According to regulation 8(3):
"Every company whose shares are listed on a stock exchange, shall within 30 days from the financial year ending March, 31 as well as the record date of the company for the purposes of declaration of dividend, make yearly disclosure to all the stock exchanges on which the shares of the company are listed, the changes, if any, in respect of the holdings of the persons referred to under sub regulation (1) and also holdings of promoters or person(s) having control over the company as on 31st March."
Sub-regulation (1) referred in sub-regulation (3) reads as under:
"(1) Every person, including a person mentioned in regulation 6 who holds more than fifteen percent shares or voting rights in any company, shall, within 21 days from the financial year ending on March 31, make yearly disclosures to the company, in respect of his holdings as on 31st March."
(3.) FOR failure to comply with the requirements of regulation 8(3), penalty has been provided in regulation 15A(b) as under:
15.A. If any person, who is required under this Act or any rules or regulations made thereunder,-
(b) to file any return or furnish any information, books or other documents within the time specified therefore in the regulations, fails to file return or furnish the same within the time specified therefore in the regulations, he shall be liable to a penalty not exceeding five thousand rupees for every day during which such failure continues.;
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