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1 - 3 of 3 (0.16 seconds)The Securities and Exchange Board of India Act, 1992
Kesari Printers Ltd vs Sebi on 10 October, 2007
6. While disposing of Appeal no.199 of 2014 (Inland Printers Limited vs. SEBI)
today i.e. on 20.10.2015 this Tribunal held that the obligation to make disclosures by
a listed company to the stock exchanges under Regulation 8(3) of the Takeover
Regulations, 1997 is mandatory. Failure to make disclosures under Regulation 8(3)
entails statutory penal liability under Section 15A(b) of the SEBI Act. Penalty
imposable under Section 15A(b) of the SEBI Act at the relevant time was Rs.1 lakh
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for each day during which such failure continues or one crore rupees whichever is
less. In Appeal no.407 of 2014 penalty calculated at the rate of Rs. 1 lakh for each
day's delay would be more than several crores of rupees. However, after taking into
consideration all mitigating factors, the Adjudicating Officer has imposed penalty
of Rs.23 lakh for failing to make disclosures under Regulation 8(3) for the financial
year ended 31st March, 1998 to 31st March, 2011which cannot be said to be
unreasonable. However, in Appeal no.290 of 2015, for the very violation, the
Adjudicating Officer of SEBI by his order dated March 30, 2015 has imposed
penalty of Rs.14 lakh on the appellant therein. It is relevant to note the violation
committed by the appellants in these two appeals relate to the same period i.e. for
the financial year ended March 31, 1998 to March 31, 2011. However, in Appeal
No.407 of 2014 penalty imposed is Rs.23 lakh, whereas, in Appeal No.290 of 2015,
the penalty imposed is Rs.14 lakh. Since the order passed in Appeal No.290 of 2015
on March 30, 2015 is subsequent in point of time wherein for delay in making
disclosures for the very same period, penalty imposed is Rs.14 lakh, we deem it
proper to reduce the penalty imposed on the appellant in Appeal no.407 of 2014,
from Rs.23 lakh to Rs.14 lakh as in case of appellant in Appeal no.407 of 2104.
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