B. K. Narula (Huf) And Others vs Sebi

Date of Decision: 03.10.2016

Appeal No. 511 of 2015

1.

B. K. Narula (HUF) Having PAN-AAAHB4455L A-89, Sector-2, Noida- 201 301, Uttar Pradesh

2. Ms. Sidhi Narula Having PAN- AAEPN0229N A-89, Sector-2, Noida- 201 301, Uttar Pradesh

3. Ms. Ridhi Narula Having PAN-ACKPN7385D A-89, Sector-2, Noida- 201 301, Uttar Pradesh

4. M/s. Solar Renewable Urja Pvt. Ltd. (Now Sridhi Infra Private Limited) Having PAN-AANCS7337S 18/20, Kazi Sayed Street, Masjid Bunder, Mumbai- 400 009 ...Appellants

Versus

Securities and Exchange Board of India, SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai -400 051 ...Respondent

Mr. Ashok Chhabra, Advocate for Appellants.

Mr. Kumar Desai, Advocate with Mr. Tomu Francis, Advocate for the Respondent.

CORAM: Justice J.P. Devadhar, Presiding Officer Jog Singh, Member Dr. C.K.G. Nair, Member 2

Per: Justice J.P. Devadhar (Oral)

1. Appellants are aggrieved by the order passed by the Adjudicating

Officer ("AO" for short) of Securities and Exchange Board of India

("SEBI" for short) on September 08, 2015 whereby penalty of ` 20 lac is

imposed on the appellants under Section 15A(b) of the Securities and

Exchange Board of India Act, 1992 for violating regulation 7(1A) read

with regulation 7(2) of the Securities and Exchange Board of India

(Substantial Acquisition of Shares and Takeovers) Regulations, 1997

("SAST Regulations 1997" for short).

2. In the show cause notice issued to the appellants and also in the

impugned order it is held that the appellants have violated regulation

7(1A) of SAST Regulations during the period from 30.09.2008 to

30.09. 2010.

3. Counsel for SEBI fairly states that in the present case, obligation to

make disclosure arose on account of amendment to regulation 7(1A) with

effect from 06.11.2009. Since the impugned order holds appellants

guilty of violating regulation 7(1A) for the period prior to the amendment

to regulation 7(1A) with effect from 06.11.2009, counsel for SEBI states

that the impugned order be quashed with liberty to the SEBI to issue

fresh show cause notice to the appellants if deemed fit and adjudicate the

matter in accordance with law. 3

4. In these circumstances, the impugned order is quashed and set

aside with liberty to SEBI to issue fresh show cause notice in accordance

with law if deemed fit.

5. Appeal is disposed of in the aforesaid terms with no order as to

costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Jog Singh Member

Sd/-

Dr. C.K.G. Nair Member 03.10.2016 Prepared & Compared By: PK