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TMI Blog2020 (5) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... osed on the appellant. Out of this Rs. 10 lakh has been imposed under section 15A(a) of the SEBI Act, 1992 for violation of Sections 11(2)(i) and 11C(3) of the SEBI Act and Rs. 20 lakh has been imposed under section 23E of Securities Contracts (Regulation) Act, 1956 ("SCRA" for convenience) for violation of Section 21 of the SCRA read with clause 43 of the Listing Agreement. Aggrieved by these directions this appeal has been filed. 2. The appellant Radford Global Limited ("RGL") is a company listed on the Bombay Stock Exchange Limited ("BSE" for convenience). SEBI conducted an investigation covering the period from February 27, 2012 to March 24, 2014 relating to the company. During the investigation SEBI issued a summons to the appellant u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. the impugned order has been passed on February 26, 2019. 4. It is the contention of the learned counsel for the appellant Shri Jaikishan Lakhwani, that whatever documents available with the appellant were provided to SEBI in response to the notice of summons as well as seeking information. Further it was contended that though the period of preferential allotment was during 2012 the AO had asked documents much prior to the same, even as old as 20 years, which were not available to the appellant particularly when the appellant had a completely new management in position. In any case, it was contended that the AO has gone beyond the scope of the investigation by seeking information and copies of the documents much prior to February 27, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7. The relevant questions to be considered are whether the appellant has violated provisions of Section 11C(3) of the SEBI Act by its non-compliance of summons issued by SEBI and whether clause 43 of the Listing Agreement has been violated by not disclosing to the Stock Exchange the alleged variations between the projected utilization of funds and the actual utilization of funds raised through the preferential allotment. These Sections are produced for convenience below:- "Relevant provisions of SEBI Act: 11C. (3) The Investigating Authority may require any intermediary or any person associated with securities market in any manner to furnish such information to, or produce such books, or registers, or other documents, or record before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tc. At the same time, we note that investigation was relating to the period 2012-2014 and documents were sought in 2017 for periods much prior to 2012. Therefore, though the appellant may be charged with non-submission of full information the submission of the appellant that the management of the appellant was new etc. has to be given some weightage while imposing the penalty. Given this and the facts of the matter, we are of the view that the amount of penalty at the rate of Rs. 10 lakh on this violation is on the higher side particularly when the appellant did provide part of the information readily available with them. 9. As regards non-reporting of the variations relating to the proceeds/funds raised through preferential allotment it i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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