Securities Appellate Tribunal (SAT):<\/b>\u00a0Coram of Justice Tarun Agarwala (Presiding Officer), Dr\u00a0C. K. G. Nair (Member), and Justice M. T. Joshi (Judicial Member) partly allowed an appeal for condoning the delay in making disclosures under the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992(hereinafter referred to as \u2018PIT Regulations\u2019) and Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (hereinafter referred to as \u2018SAST Regulations\u2019).<\/p>\n
Appellants were married to each other and were former promoters of Glodyne Technoserve Ltd. They took loans from banks and financial institutions by pledging their shareholdings in Glodyne to fund their business. They gave the power of attorney to these institutions to fund their business. The appellants claim that the lenders invoked the pledge and sold their shares without prior intimation. Following this, the appellants belatedly made disclosures under the PIT and SAST Regulations.<\/p>\n
The Adjudicating Officer (AO) issued a show-cause notice post five years under Section 15A(b) of the SEBI Act, 1992 alleging that the appellants failed to make the disclosures within the stipulated period prescribed under the PIT and SAST Regulations. The appellants argued that disclosures were belatedly made by them as they were unaware of the sale of its shares made by the lenders and hence the delay must be condoned. The AO after hearing passed the impugned order imposing a penalty of Rs 40 lakhs upon the appellants to be paid jointly and severally.<\/p>\n