The Securities Appellate Tribunal has set aside a Sebi order imposing Rs 50 lakh penalty on eight individuals for their failure to make timely disclosures about changes in their shareholding patterns.
The case pertained to their shareholdings in Residency Projects and Infratech Ltd.
Following an appeal against the Sebi order, passed in September 2014, the tribunal has set aside the ruling, citing "interest of justice" in terms of providing another hearing opportunity for them.
Sebi had rejected the individuals request for extension of time for personal hearing.
In its order, SAT said although the grounds on which extension of time to file reply was sought was not justified, the interest of justice it would have been just and proper to grant one adjournment before passing the final order.
"In this view of the matter, the impugned order dated September 17, 2014 is quashed and set aside and the matter is restored to the file of Adjudicating Officer of Sebi for passing fresh order on merits and in accordance with law," the tribunal said in its order.
Sebi had imposed a consolidated penalty of Rs 50 lakh on Bhanwarlal H Ranka, Pradeep B Ranka, Kusum B Ranka, Sangeetha P Ranka, Anjana B Ranka, Arun B Ranka, Rachana A Ranka and Kantilal G Bafna for failing to comply with the provisions of Sebi (Substantial Acquisition of Shares and Takeovers) Regulations.
It was alleged that these individuals had failed to make required public announcements on three occasions.
According to Sebi, the eight individuals, who were holding 68 per cent stake in Residency Projects and Infratech Ltd, acquired additional shares on three occasions over a period of time from August 2004 to March 2007. However, disclosures in this regard were not made on time.
As per Sebi norms, entities having 55 per cent but less than 75 per cent stake in a listed company has to make a public announcement as and when they acquire additional shares in it.
