Appeal No. 69 of 2014. Case: Vybra Automet Limited Vs Securities and Exchange Board of India. Securities and Exchange Board of India
| Case Number | Appeal No. 69 of 2014 |
| Counsel | For Appellant: Mr. Venkata Ramana, Practicing Company Secretary and For Respondents: Mr. Kumar Desai, Advocate, Mr. Mihir Mody and Mr. Pratham V. Masurekar, Advocates |
| Judges | J.P. Devadhar, J. (Presiding Officer) and A.S. Lamba, Member |
| Issue | Securities And Exchange Board of India Act, 1992 - Sections 15A(b), 15J |
| Judgement Date | June 20, 2014 |
| Court | Securities and Exchange Board of India |
Judgment:
J.P. Devadhar, J. (Presiding Officer)
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This appeal is filed to challenge order passed by the adjudicating officer of Securities and Exchange Board of India ('SEBI' for short) dated January 20, 2014. By the said order penalty of Rs. 6 lac has been imposed upon the appellant under section 15A(b) of SEBI Act, 1992 for violating regulation 8(3) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 1997 ('SAST Regulations, 1997' for short).
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It is not in dispute that the appellant was obliged to make yearly disclosures under section 8(3) of SAST Regulations, 1997 and the delay in making disclosures for the year since 1998 to 2003 is as follows:
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Authorised Representative of the appellant while admitting that there is delay in making disclosures in all the years as stated hereinabove, submitted that in the facts of present case imposition of penalty of Rs. 6 lac is unjustified because, firstly, delay in making disclosures was unintentional and also on account of poor financial condition of the appellant. Secondly, trading during relevant years being very thin, the adjudicating officer was not justified in imposing huge penalty of Rs. 6 lac. Thirdly, delay in making disclosures did not cause any loss to the investors and, therefore, the penalty of Rs. 6 lac imposed upon the appellant is unjustified.
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We see no merit in the aforesaid contentions.
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Fact that the financial position of the...
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