Corrigendum to Order dated May 31, 2023 in the matter of Sharon Bio Medicine Limited
- Order No.WTM/ASB/CFID/CFID/27060/2023-24
Ratio decidendi
The rule this decision rests on
A regulatory obligation under the LODR Regulations, 2015 cannot be enforced against a person for a period before those Regulations came into effect in December 2015. Allegations of violation of Regulations 40(9) and (10) are therefore dropped, as they concern a period before that date. A director who resigned before the LODR Regulations, 2015 came into effect cannot be held to have violated them. The allegations against Noticee 4 under those Regulations fail on that ground. A requirement to submit financial results is satisfied where the results are filed within the period prescribed by the relevant sub-regulation. Results filed within 60 days of the end of the financial year comply with Regulation 33(3)(d), so the allegation of violation of Regulation 33(3) does not sustain. Where an audit report has been filed and the provision under which it is required prescribes no timeline for filing, no violation can be made out for late filing. The allegation under Regulation 55A of the DP Regulations, 1996 for the quarter ended December 2011 is therefore dropped. Noticees 1 and 3 are liable for violation of Regulations 27(2)(a) and 31(1) of the LODR Regulations, 2015 for delayed submission of the report or statement for the quarter ended March 2016, and of Regulation 33(2)(a) for false certification. The corrected findings and penalties are to be read together with the Order, which remains in force as modified by this corrigendum.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
1. Securities and Exchange Board of India (SEBI) has issued an Order No. WTM/ASB/CFID/CFID/26926/2023-24 dated May 31, 2023 (“the Order”) against the Noticees mentioned above, in the matter of Sharon Bio Medicine Limited. Pursuant to observation of certain errors, the Order is hereby rectified as under: (a) The contents of Para 36 of the Order shall stand replaced with the following:
“36. Accordingly, I hold that the Noticees 1, 2 and 3 have violated the provisions of Regulations 4(1)(a),(b),(c),(e)(g),(h)&(i), Regulation 4(2)(f)(ii)(6)(7)(8), 4(2)(f)(iii)(3)(6) and (12) and Regulation 48 of the LODR Regulations, 2015 read with Section 27 of SEBI Act,1992. Additionally, Noticees 1 and 3 have also violated Regulation 27(2)(a), and Regulation 31(1) of the LODR Regulations, 2015 (due to delayed submission of report / statement in respect of Quarter ended March 2016) and also Regulation 33(2)(a) due to false certification. However, the allegation of violation of Regulation 33(3) of the LODR Regulations, 2015 against the Noticees does not sustain, as the financial results for Quarter ended March 31, 2016 was submitted on May 30, 2016 i.e. within timeline of 60 days from the end of the financial year, as prescribed under Regulation 33(3)(d). Further, the allegations of violations of the provisions of LODR Regulations, 2015 against Noticee 4 (Vijay Kirpalani) do not sustain as he had resigned as a director on March 24, 2015 whereas the LODR Regulations, 2015 came into effect in December 2015. The allegation of violation of Regulations 40(9) and (10) of the LODR Regulations, 2015 against the Noticees is dropped, since the allegation pertains to the period prior to the coming into effect of the LODR Regulations, 2015. Further, the Corrigendum to the Final Order dated May 31, 2023 in the matter of Sharon Bio-Medicine Limited allegation of violation of Regulation 55A of the DP Regulations, 1996 against the Noticees for Quarter ended December 2011 is also dropped since the Audit Report was filed on February 03, 2012 and there is no timeline mentioned in the said Regulation for submitting the Audit Report mentioned therein.”
(b) In para 39 of the Order, reference to DP Regulations, 1996 shall stand omitted.
(c) The Table mentioned under Para 41(d) in the Order shall stand replaced with the following Table:
Sl. Name of the Penalty Penalty Penalty Total No. Noticee imposed imposed imposed penalty to under under Section under be paid Section 15HB of the Section 23H 15HA of the SEBI Act, of the SCRA, SEBI Act, 1992 1956 1992 1. Savita Satish Rs.20,00,000 Rs.5,00,000 Rs.2,00,000 Rs.27,00,000 Gowda 2. Mohan P. Kala Rs.20,00,000 Rs.5,00,000 Rs.2,00,000 Rs.27,00,000 3. Lalit Misra Rs.20,00,000 Rs.5,00,000 Rs.2,00,000 Rs.27,00,000 4. Vijay Kirpalani Rs.20,00,000 NIL Rs.2,00,000 Rs.22,00,000
2. The Order shall always be read together with this corrigendum.
3. A copy of this corrigendum shall be sent to the Noticees, the depositories, the recognised stock exchanges and the RTAs for information and compliance.
Place: Mumbai ASHWANI BHATIA Date: June 02, 2023 WHOLE TIME MEMBER SECURITIES AND EXCHANGE BOARD OF INDIA
Corrigendum to the Final Order dated May 31, 2023 in the matter of Sharon Bio-Medicine Limited
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