Case Law Details
M/s New Delhi Television Limited Vs SEBI (SAT Mumbai)
SAT upheld the order of SEBI penalising the Company and its Directors for non- disclosure of tax demand on the grounds that any information which have effect on the operations of the Company is price sensitive and must be disclosed immediately to the Stock exchange. However, penalty levied on Compliance Officer was reversed on the grounds that being an employee the Compliance Officer works under the direction of Board/Managers of the Company.In the same matter SAT inferrred that it is the obligation of the Company to ensure that all the disclosures are available in Public Domain and mere couriering the same to the Stock exchange is not complete compliance.
Read Full Text of the Order of Securities Appellate Tribunal, Mumbai
1. Even though different orders have been passed by the Adjudicating Officer (“AO” for convenience) of the Securities and Exchange Board of India (“SEBI” for convenience) the issue involved is more or less the same and is also interlinked and therefore both the appeals are being decided together.
2. Appeal No. 358 of 2015 has been filed against the order dated June 04, 2015 passed by the AO of SEBI imposing a penalty of Rs. 25,00,000/- (Rupees Twenty Five Lakhs only) for violation of Section 23A of the Securities Contracts (Regulation) Act, 1956 (“SCRA” for convenience) and Rs. 1,75,00,000/- (Rupees Once Crore Seventy Five Lakhs only) for violation of Section 23E of the SCRA for failure to comply with Clause 36 of the Listing Agreement. Appeal No. 150 of 2018 has been filed against the order dated March 16, 2018 passed by the AO imposing penalties under Section 15A(b) of the SEBI Act, 1992 (“SEBI Act” for convenience) as well as under Section 23A(a) and Section 23E of the SCRA for violation of Regulation 13(6) of SEBI (Prohibition of Insider Trading) Regulations (“PIT Regulations” for convenience) read with Clauses 2.1 and 7.0(ii) of Schedule II for Code of Corporate Disclosure Practices for Prevention of Insider Trading specified in Schedule II read with Regulation 12(2) of PIT Regulations as well as violation of Clause 36 of the Listing Agreement.
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