adjudication order with respect to the promoters in the matter of m/s safari industries (india)...

8/9/2019 Adjudication Order with respect to the Promoters in the matter of M/s Safari Industries (India) Limited.

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Adjudication Order in the matter of M/s. Safari Industries (India) Limited Page 2 of 21

App4c*ton No/ 51 of 2015 -oe+ %E&I *44oe+ to -onts e@tenson of t-e for p*ssn8 te

fn*4 r+er/

FACTS OF THE CASE IN BRIEF

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%r A-4 %-*tc*n+r* Met*, %r 8es %-*tc*n+r* Met*, %r A


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Adjudication Order in the matter of M/s. Safari Industries (India) Limited Page of 21

SHO! CAUSE NOTICE, RE$"& AND $ERSONA" HEARING

"/

%o #*se Notce (eren*fter referre+ to *s ?SCN@) =ef/ No/ EA>6.A.D%.29262.2013, EA>

6.A.D%.29265.2013, EA>6.A.D%.29270.2013, EA>6.A.D%.29275.2013, EA>

6.A.D%.29277.2013, EA>6.A.D%.29279.2013, EA>6.A.D%.292$2.2013, EA>

6.A.D%.292$7.2013, EA>6.A.D%.292$9.2013, EA>6.A.D%.29290.2013, EA>

6.A.D%.29291.2013 *n+ EA>6.A.D%.29292.2013 +*te+ Noe-er 1$, 2013 ere sse+ to te

Notcees n+er r4e "(1) of %E&I =4es co--nc*tn8 te *44e8e+ o4*ton of '*


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te s*+ notce *s +4 *c


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Adjudication Order in the matter of M/s. Safari Industries (India) Limited Page ! of 21

Notce +*te+ Fer*r 0", 2015/ n te sce+4e+ +*te, te A=s of te Notcees *ppe*re+ on e*4f

of te Notcees *n+ f4e+ rtten s-ssons +*te+ Fer*r 19, 2015 fro- Notcee %r A-4

Met* *n+ reter*te+ te s-ssons -*+e teren/ 'e A=s s-tte+ t*t te co-p*n *+

-*+e te +sc4osre n+er =e84*ton $(3) of te '*


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Adjudication Order in the matter of M/s. Safari Industries (India) Limited Page & of 21

:.! "hat in the instant case$ the com,an# had filed the necessar# disclosures under

egulation () to the 7om0a# Stoc* change Ltd. (hereinafter referred to as ?7S8) on

A,ril 1-$ 2%%&. A co,# of the disclosure dated A,ril 11$ 2%%& made 0# the com,an# under

egulation () of the "a*eo+er egulations and recei+ed 0# 7S on A,ril 1-$ 2%%&

together ith its ac*noledgement as ,ro+ided

:.& "hat further for the financial #ear ending March 1$ 2%%&$ the 'oticees had made the

disclosure in terms of egulation (2) of the "a*eo+er egulations on A,ril 2$ 2%%&

against the due date of A,ril 21$ 2%%& (i.e. a dela# of - da#s)

:.- "hat Annual disclosure a0out holding of e3uit# shares in the com,an# is re3uired to 0e

made 0# a ,romoter to that com,an# under regulation (2) and there is no o0ligation to

ma*e disclosure to the stoc* echange under regulation (2) of the "a*eo+er

egulations$ and the disclosure 0# the ,romoter to the com,an# is onl# in the form of an

internal communication 0eteen the com,an# and a ,romoter$ as such$ dela# in ma*ing

disclosure to the com,an# has no im,act on the trading of the com,an#8s securities at

the stoc* echange. "he disclosure under egulation () as made 0# the com,an#

ithin sti,ulated ,eriod i.e. on A,ril 11$ 2%%&$ hich as dul# ac*noledged 0# 7S on

A,ril 1-$ 2%%&$ hence$ material com,liance of the regulator# re3uirement to ,rotect the

interest of in+estors in the securities mar*et as com,lied$ as the re3uisite information for rele+ant ,eriod as a+aila0le in ,u0lic domain

:. "hat the 'oticees came to *no a0out such com,liance under egulation () 0# the

com,an# after the ,assing of the adjudication order dated 9anuar# 2:$ 2%14 hen the#

made en3uiries ith the com,an# and re3uested it to ,ro+ide the re3uisite information

in this regard

:.:

"hat there as no change in the shareholding of the 'oticees ith res,ect to the ,eriod

in 3uestion$ and the information as a+aila0le on the record of the com,an# and thestoc* echanges in +ie of the disclosure made 0# the com,an# ith 7S under clause

! of the Listing Agreement$ as also disclosures made 0# the com,an# under egulation

()$ thus$ the in+estors ere not de,ri+ed of the re3uisite information a0out

shareholding of the 'oticees during the ,eriod A,ril 21$ 2%%& (due date of filing

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Adjudication Order in the matter of M/s. Safari Industries (India) Limited Page - of 21

disclosure under egulation (2)) to A,ril 2$ 2%%& (actual date of disclosure). urther

that in+estors in the securities mar*et ere entitled to the said information 0# A,ril %$

2%%& i.e. the due date of filing of disclosures under egulation () 0# the com,an#$

hoe+er$ in the etant case$ the disclosure under egulation () as made 0# the

com,an# on A,ril 11$ 2%%& itself i.e. much 0efore the due date.


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Adjudication Order in the matter of M/s. Safari Industries (India) Limited Page of 21

:.14 "hat the action to hold each 'oticee se+erall# lia0le for the same +iolation under

egulation (2) of the "a*eo+er egulation is harsh and inconsistent ith the earlier

decision ta*en 0# S7I/ SA" in similar cases

:.1! "hat in se+eral other cases the adjudicating officers of S7I ha+e im,osed consolidated

,enalt# on all the defaulters in relation to defaults ,ertaining to disclosures under

"a*eo+er egulations. Also that the amount of ,enalt# is unreasona0l# high and not

commensurate ith the technical +iolation

:.1& "hat in the matter of Shri Anil Bumar Sharda$ herein for the +iolation of regulation (2)

of the "a*eo+er egulations in relation to M/s. 9aihind S#nthetics Ltd.$ +ide Adjudication

Order dated 'o+em0er 2-$ 2%%:$ Adjudicating Officer held one ,erson lia0le for +iolation

of regulation (2) of the "a*eo+er egulations$ herein there as also change in the

shareholding of Mr. Anil Bumar Sharda during the rele+ant ,eriod and im,osed ,enalt#

of s. 1!$%%%/;.

CONSIDERATION OF ISSUES

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I *e c*ref44 perse+ te rtten s-ssons of te Notcees, te s-sson -*+e *t te

person*4 e*rn8s *n+ te +oc-ents **4*4e on recor+/ It s osere+ t*t te *44e8*ton *8*nst

te Notcees s t*t te *+ f*4e+ to -*


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Adjudication Order in the matter of M/s. Safari Industries (India) Limited Page : of 21

FINDINGS

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&efore -on8 for*r+, t s pertnent to refer to te prosons of =e84*ton $(2) of '*


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Adjudication Order in the matter of M/s. Safari Industries (India) Limited Page 1% of 21

-*n o4+er *n+ oter pro-oters ere s re4*tes *s ont o4+ers, ence on4 %r A-4 Met*

-* e cons+ere+ *s respons4e for -*


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'e Ann*4 +sc4osres to e -*+e * pro-oter to te co-p*n n+er =e84*ton $(2) of te

'*


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to8 te oter Notcees -* e te re4*tes of %r A-4 Met*, te f*ct re-*ns t*t te ere

the indi+idual ,romoters of te co-p*n/ I, ts, conc4+e t*t te Notcees, *s n++*4

pro-oters of te co-p*n *t te re4e*nt pont of t-e, ere e*c inter alia rere+ to +sc4ose

ter o4+n8 to te co-p*n tn 21 +*s fro- te fn*nc*4 e*r en+n8 M*rc 31, *s e44 *s te

recor+ +*te of te co-p*n for te prposes of +ec4*r*ton of ++en+/

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'e ne@t sse for cons+er*ton s eter te Notcees *e o4*te+ te prosons of =e84*tons

$(2) of te '*


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tere te Notcees *e o4*te+ te prosons of =e84*ton $(2) of te '*A. If an# ,erson$ ho is re3uired under this Act or an# rules or regulations made thereunder$J

(0) to file an# return or furnish an# information$ 0oo*s or other documents ithin the time

s,ecified therefore in the regulations$ fails to file return or furnish the same ithin the time

s,ecified therefore in the regulations$ he shall 0e lia0le to a ,enalt# of one la*h ru,ees for eachda# during hich such failure continues or one crore ru,ees$ hiche+er is less.

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4e +eter-nn8 te *nt- of -onet*r pen*4t n+er %ecton 15 A(), I *e cons+ere+ te

f*ctors stp4*te+ n %ecton 15> of %E&I Act, c re*+s *s n+er:>

=actors to $e taken into account $y te ad3udicating officer

1>. Ehile adjudging 3uantum of ,enalt# under Section 1!;I$ the adjudicating officer shall ha+e due

regard to the folloing factors$ namel#F;(a) the amount of dis,ro,ortionate gain or unfair ad+antage$ here+er 3uantifia0le$ made as

a result of the default

(0) the amount of loss caused to an in+estor or grou, of in+estors as a result of the default

(c) the re,etiti+e nature of the default.

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Adjudication Order in the matter of M/s. Safari Industries (India) Limited Page 1! of 21

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In e of te c*r8es *s est*4se+, te f*cts *n+ crc-st*nces of te c*se *n+ te +8-ents

referre+ to *n+ -entone+ eren*oe, te *nt- of pen*4t o4+ +epen+ on te f*ctors

referre+ n %ecton 15> of %E&I Act *n+ st*te+ *s *oe/ It s note+ t*t no *ntf*4e f8res *re

**4*4e to *ssess te +sproporton*te 8*n or nf*r *+*nt*8e -*+e *s * res4t of sc +ef*4t

te Notcees/ Frter fro- te -*ter*4 **4*4e on recor+, t -* not e poss4e to *scert*n te

e@*ct -onet*r 4oss to te nestors on *ccont of +ef*4t te Notcees/ Hoeer, te -*n

oecte of te '*


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ha+ing control o+er a com,an# and also ,ersons acting in concert ith himD. %nce te Notcees

*e *+-tte+ to *e f4e+ te +sc4osre n+er =e84*ton $(2) of te '*


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ORDER

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After t*Pen*4tes =e-tt*4e to !oern-ent of In+*, p**4e *t M-*, tn "5 +*s of recept of

ts or+er/ 'e s*+ +e-*n+ +r*ft so4+ e for*r+e+ to %r D % %n+*res*n, #ef !ener*4

M*n*8er, #orpor*ton Fn*nce ep*rt-ent, %E&I &**n, P4ot No/ # O " A, ! &4oc>+*

adjudication order with respect to the promoters in the matter of m/s safari industries (india)...

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