{"id":242107,"date":"2021-01-11T18:00:16","date_gmt":"2021-01-11T12:30:16","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=242107"},"modified":"2021-01-15T11:51:12","modified_gmt":"2021-01-15T06:21:12","slug":"sebi-grants-limited-relaxation-to-noticees-for-inter-alia-availing-benefits-of-corporate-actions-during-restraint-period","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/01\/11\/sebi-grants-limited-relaxation-to-noticees-for-inter-alia-availing-benefits-of-corporate-actions-during-restraint-period\/","title":{"rendered":"SEBI grants limited relaxation to Noticees for inter alia availing benefits of corporate actions during restraint period"},"content":{"rendered":"

Securities and Exchange Board of India (SEBI): <\/strong>G. Mahalingam, (Whole Time Member) has granted limited relaxations to the noticee, namely N. Ravichandran, Anita Ravichandran and Hemant Patel, for inter alia <\/em>availing benefits of corporate actions during the restraint period, dematerializing physical shares and extension of timeline for selling shares lying in the Demat accounts for paying the disgorgement amount to SEBI.<\/p>\n

SEBI had passed an order on 05-11-2019, bearing reference number WTM\/GM\/EFD\/DRA-I\/43\/2019-20 in the matter of KLG Capital Services Limited. Subsequently, another order dated 09-12-2020, bearing reference number WTM\/GM\/EFD\/DRA1\/ISD\/9769\/2020-21 was also passed by SEBI in the said matter.<\/p>\n

The Noticees concerned had requested for certain relaxations during the period of restraint from the directions contained in the abovementioned orders. Noticee, Anita Ravichandran, while requesting for extension of timeline further submitted that selling of shares lying in her Demat account to pay the disgorgement amount to SEBI, which was permitted by SEBI to be completed by 12-09-2020, could not be done within the prescribed timeframe due to the delay on part of her broker (HDFC Securities Ltd.) and DP (HDFC Bank Ltd.).<\/p>\n

SEBI, while granting certain limited relaxations during the period of restraint to the noticees permitted them to avail the benefits of any corporate action like bonus issues, rights issue etc., that may arise in respect of securities held by them and to dematerialize the securities held by them in physical form and get them credited into their Demat account(s). The noticees were also permitted to dematerialize and receive a credit of those securities in their Demat account(s) which they were entitled to inherit\/receive upon transmission. Further, the time limit provided to, Anita Ravichandran and\u00a0 Priyanka Singhvi for completion of sale or liquidation of securities and remitting the proceeds thereof to SEBI under para 2(b) of the Addendum dated 13-08-2020 (WTM\/GM\/EFD-I\/DRA-I\/43D\/2020-21) was extended to 31-01-2021. Regarding the noticees, Hemant Patel and Hemant Patel HUF, permission to square off any open position held by them in the derivative segment was granted, also these noticees were made free to access and utilize the funds deposited in the bank account (Axis Bank A\/c No. 909010042957248) in terms of orders of Securities Appellate Tribunal, issued on 10-11-2009 with a further condition that the funds lying therein should first be utilized for payment of the disgorgement amount and the applicable interest as directed in the SEBI order dated 09-12-2020. [KLG Capital Services Ltd., In Re., 2020 SCC OnLine SEBI 199<\/b><\/a>, decided on 22-12-2020]<\/p>\n","protected":false},"excerpt":{"rendered":"

Securities and Exchange Board of India (SEBI): G. Mahalingam, (Whole Time Member) has granted limited relaxations to the noticee, namely N. Ravichandran, <\/p>\n","protected":false},"author":67011,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[39643,31613,2563,32601],"class_list":["post-242107","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-demat-account","tag-noticee","tag-SEBI","tag-shares"],"yoast_head":"\nSEBI grants limited relaxation to Noticees for inter alia availing benefits of corporate actions during restraint period | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2021\/01\/11\/sebi-grants-limited-relaxation-to-noticees-for-inter-alia-availing-benefits-of-corporate-actions-during-restraint-period\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEBI grants limited relaxation to Noticees for inter alia availing benefits of corporate actions during restraint period\" \/>\n<meta property=\"og:description\" content=\"Securities and Exchange Board of India (SEBI): G. 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Mohanty, (Whole Time Member) by order prohibited the Noticees from accessing the securities market for a period of two years. Securities and Exchange Board of India (\u201cSEBI\u201d) investigated into the scrips of Vertex Spinning Limited (\u201cVSL\u201d) and DMC International Limited (\u201cDMCIL\u201d) for\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":255111,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/04\/sebi-monotonous-modus-operandi-modulated-endgame-issue-of-gdr-artificial-arrangement-supported-by-the-subscribing-company-itself-restrained-and-to-disgorge\/","url_meta":{"origin":242107,"position":1},"title":"SEBI| Monotonous modus operandi, modulated endgame |Issue of GDR, artificial arrangement, supported by the subscribing Company itself-Restrained and to disgorge","author":"Editor","date":"October 4, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI)-G Mahalingam, Whole Time Member, in a detailed 95 paged order, while disposing off the proceedings against Noticee 1 without any directions, considering the order for winding up of the Company by the High Court of Calcutta, issued directions for Noticee 1 in case\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/08\/MicrosoftTeams-image-135.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":240375,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/09\/sebi-issues-operational-guidelines-for-transfer-and-dematerialization-of-re-lodged-physical-shares\/","url_meta":{"origin":242107,"position":2},"title":"SEBI issues operational guidelines for Transfer and Dematerialization of re-lodged physical shares","author":"Bhumika Indulia","date":"December 9, 2020","format":false,"excerpt":"SEBI has fixed March 31, 2021, as the cut-off date for re-lodgment of transfer requests and has stipulated that such transferred shares shall be issued only in Demat mode. Operational guidelines for crediting the transferred shares into the respective Demat account of the investor, with inputs from stakeholders, are as\u2026","rel":"","context":"In "Business News"","block_context":{"text":"Business News","link":"https:\/\/www.scconline.com\/blog\/post\/category\/news\/business_news\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":243471,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/06\/sebi-bans-kishor-biyani-and-other-promoters-of-frl-from-securities-market-rs-17-78-crore-to-be-disgorged-for-the-wrongful-gains-made-by-them\/","url_meta":{"origin":242107,"position":3},"title":"SEBI bans Kishor Biyani and other promoters of FRL from securities market; Rs 17.78 crore to be disgorged for the wrongful gains made by them","author":"Editor","date":"February 6, 2021","format":false,"excerpt":"Security and Exchange Board of India (SEBI): Ananta Barua, (Whole Time Member) found Chairman of Future Group, Kishor Biyani and its other promoters indulged in insider trading. The Board, in addition to a year ban on Kishor Biyani, Anil Biyani and Future Corp. Resource Pvt. Ltd. (FCRPL), had also imposed\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":253926,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/09\/09\/special-economic-offences\/","url_meta":{"origin":242107,"position":4},"title":"SEBI | Off the hook from \u2018SEBI\u2019S SCORES\u2019-Prosecution already initiated before Court of Special Economic Offences-No further directions necessitated","author":"Editor","date":"September 9, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): G. Mahalingam, Whole Time Member, did not find it suitable to pass any further directions in the matter. The Tribunal disposed of the show cause notice for the Noticees, however, for Mukkaram Jan (Noticee 3), ordered it to subsist in view of the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":256695,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/03\/sebi-assuring-profits-in-a-market-already-subjected-to-risk-debarred-from-the-market-for-subjecting-others-to-risk\/","url_meta":{"origin":242107,"position":5},"title":"SEBI | Assuring profits in a market already subjected to risk- Debarred from the market for subjecting others to risk","author":"Editor","date":"November 3, 2021","format":false,"excerpt":"Securities and Exchange Board of India (SEBI): G. Mahalingam, Whole Time Member, while deciding an order was of the opinion that the Noticee, Samrat Trader and its proprietor Altamash Sheikh did not act honestly, fairly and in the best interests of its clients and in the interest of integrity of\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/242107","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=242107"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/242107\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=242107"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=242107"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=242107"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}