9911796707
TMI Blog2011 (12) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... a monetary penalty of ₹ 10 lakh each on the appellants under Section 15HA of the Securities and Exchange Board of India Act, 1992 (for short the Act) for violating regulations 3 and 4 of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (for short FUTP Regulations). 2. The appellant is a stock broker registered with the Securities and Exchange Board of India (for short the Board) and its shares are listed on the National Stock Exchange Limited (NSE). The appellant was served with a show cause notice dated July 20, 2010 alleging that despite steep reduction in the promoters shareholding, the company and its promoters including t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 180 of 2011 decided on November 15, 2011), this Tribunal has held as under: The disclosures made by the appellant from time to time have been tabulated in the form of a chart which is referred to in paragraph 23 of the impugned order and the same is reproduced hereinafter for facility of reference. As on 30.06.08 As on 30.09.08 As on 31.12.08 As on 31.03.09 As on 30.06.09 Promoter Actual 17094209 16876387 14471342 6680048 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,149,480 2.10% 3.81% 5.94% 10.00% 8.49 Public shareholding less than 1% Actual 14148948 14537079 30255517 31989936 68172577 28.30 29.07 60.51 66.69 71.06 Disclosed 2,35,11,498 2,21,31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt these pledged shares. This explanation cannot be accepted. It is common case of the parties that 27 per cent of the total share capital of the company that was held by the promoters had been pledged with Dena Bank by way of security for the trading facility which it had provided to one of its sister concern. The share certificates had been delivered to the bank in physical form. It is also not in dispute that some time in the year 2006/07 Dena Bank got the shares transferred in its own name by invoking the pledge. It is also the admitted position that Dena Bank, thereafter, transferred those shares in its own name and later transferred them in the names of about 225 persons. We have on record letters from some of the persons to whom the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Alka Pandey stating that Brijesh Kothari, who is the appellant in Appeal no. 179 of 2011, and M/s. Alka Securities Ltd., which is the appellant in Appeal no. 181 of 2011, cannot be held guilty of violating the provisions of FUTP Regulations because their case stands on a different footing. The appellant in Appeal no. 179 of 2011 was only one of the directors and was not looking after the day to day affairs of the company whereas Alka Pandey was the managing director handling the day to day affairs of the company. We are unable to agree to this argument of the learned counsel for the appellant. In the show-cause notice dated July 20, 2010 it was specifically alleged that the appellant was a director of the company and he acted in contraven ..... X X X X Extracts X X X X X X X X Extracts X X X X
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