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The Securities Appellate Tribunal (SAT) allowed the appeal of Ms Indra Gulati and dismissed the appeal of Mr. O P Gulati against a SEBI adjudication order imposing a fine of Rs 1 lakh each on the couple for failure to disclose acquisition of shares of Integrated Capital Services under the takeover code.
The two erstwhile promoters of Integrated Capital Services acquired a 30 per cent stake from March 31, 1998, to March 31, 2004, and did not comply with the provisions of the takeover code, according to SEBI.
Counsel's defense
The counsel for the appellants submitted that Ms Indra Gulati never acquired the shares and hence could not be held responsible for non-disclosure under the takeover code.
The counsel also submitted that the shares were acquired by Mr O P Gulati and it was for him to declare the same to the company and to the exchanges.
Hence SAT allowed Ms Indra Gulati's appeal and dismissed Mr O P Gulati's appeal. It ruled that the SEBI adjudicating officer was right in imposing the on Mr O P Gulati.
No undue loss
SAT observed that the two appellants had not caused any undue loss to investors.
It also added that a technical breach of regulation had occurred and neither the promoters nor the management took any undue gain or advantage.
>raghavendrarao.k@thehindu.co.in
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