C.Achuthan, - (1.) THESE four appeals are directed against the four separate orders made by the Adjudicating Officer imposing monetary penalty on the Appellants, holding them guilty of violating certain reporting requirements under regulation 7 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulation, 1997 (the 1997 Regulations). The details such as the name of the company whose shares were purchased, date of purchase, quantum of shares purchased etc. differ in each appeal. The submissions/explanations from the Appellants, the charges/findings and the reasoning by the Adjudicating Officer etc. in each case are substantially same. The Adjudicating Officer (Shri Ananta Barua) who adjudicated the show cause notices in all the four cases was common. In all the cases show cause notices were issued on 7.11.2001. The quantum of monetary penalty imposed is slightly different in each case. The orders under challenge in the present four appeals are: JUDGEMENT_253_TLSB0_20020.htm
(2.) Since the factual position in each appeal being different, it is felt necessary to briefly state the same separately. Appeal No.27/2002 The Appellant acquired 15,00,000 shares of Shonkh Technologies International Ltd., (Shonkh) on 29th December, 2000 which accounted for 8.57% of Shonkh's share capital. The Appellant acquired 7,50,000 shares more on 3rd January, 2001 and as a result its holding in Shonkh increased to 12.85%. The Appellant sold 15,00,000 shares on 8th January, 2001 which brought down its holding to 4.28%. On 11th January, 2001 the Appellant sold 5,25,000 shares more and as a result its holding in the company's capital further dropped to 1.28%. Thus the Appellant was holding over 5% in Shonkh for 6 working days during the period from 29th December 2000 to 8th January, 2001. On 16th January 2001 the Appellant acquired 10,00,000 shares which accounted for 5.71% of Shonkh's capital and as a result its total holding reached 6.99% of the share capital of the company. Out of the said holding the Appellant sold 3,20,000 shares on 17.1.2001 and 9,05,000 shares on 18.1.2001. The Appellant thus divested its entire holding in Shonkh i.e the acquisition made on 16th January, 2001 (10,00,000 shares) as well as its earlier share holding (2,25,000 shares) within 4 days. Appeal No.28/2002
(3.) THE Appellant acquired 20,00,000 shares of Mascon Global Ltd., (Mascon) on 1st December, 2000 which accounted for 9.58% of Mascon's share capital Out of the said acquisition the Appellant sold 15,00,000 shares on 4th December 2000 and 5,00,000 shares on 5th December, 2000. THE Appellant acquired 25,00,000 shares by 17th January, 2001 (out of which the acquisition of 10,00,000 shares made on 15th January, 2001 and 10,00,000 shares on 17th January, 2001 is the subject matter of the show cause notice) and as a result its holding reached 11.97% in Mascon's share capital THE Appellant sold 10,00,000 shares on 16th January, 2001, 8,80,000 shares on 18th January, 2001, 1,45,000 shares on 23rd January, 2001, 2,56,500 shares on 30th January, 2001 and 11,50,000 shares on 1st February, 2001 and thereby its holding in the company reduced to 0.33%. THE said 0.33% holding was also disposed of on 19th February, 2001. Appeal No.30/2002.;