ORDER

 

 

UNDER RULE 5(1) OF THE SEBI (PROCEDURE FOR HOLDING ENQUIRY AND IMPOSING PENALTY BY THE ADJUDICATING OFFICER) RULES, 1995

 

AGAINST STERLITE INDUSTRIES (INDIA) LIMITED

 

1.   Sterlite Industries (India) Limited (for brevity’s sake, hereinafter referred to as SIIL) made a preferential allotment of shares on January 31, 2000 in favour of the promoter group; Twinstar Holdings Limited (for brevity’s sake, hereinafter referred to as Twinstar). Pursuant to the said allotment, the shareholding of the promoter group of Twinstar increased from 30.77% of the paid up equity capital of SIIL to 39.87% of its paid up equity capital i.e. an increase of 9.10% of the total paid up capital of SIIL.

 

2.    The Securities and Exchange Board of India (for brevity’s sake hereinafter referred to as the SEBI) examined the extent of compliance by SIIL with the relevant provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as the Takeover Regulations and inter-alia noted that SIIL had violated the provisions of sub regulations (2) and (4) of Regulation 6 (for the year 1997)  sub regulation [3] of Regulation 7 (for the year 2000) and sub regulation (3) of Regulation 8 of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 1997 (for brevity’s sake, hereinafter referred to as the Takeover Regulations) for the year 1997-98.

 

       SHOW CAUSE NOTICE/ REPLY/ PERSONAL HEARING:

 

3.    In view of the above, adjudicating proceedings were initiated in the first instance by the appointment of Shri S.V Krishna Mohan as the adjudicating officer vide an order dated January 13, 2004. The adjudicating officer then issued a show cause notice dated May 10, 2004 to SIIL in terms of Rule 4 of the SEBI (Procedure for holding enquiry and imposing penalty by the Adjudicating Officer) Rules, 1995 (Rules) where under SIIL was asked to show cause as to why enquiry proceedings should not be held against them for the alleged violation of the provisions of sub regulations (2) and (4) of Regulation 6,  sub regulation [3] of Regulation 7 and sub regulation (3) of Regulation 8 of the Takeover Regulations. SIIL were advised to make their submissions, if any, along with supporting documents that they wished to rely upon, within 14 days from the date of the receipt of the notice, and also indicate whether they were desirous of a personal hearing.

 

4.    In reply to the same, SIIL vide their letters dated May 25, 2004 and June 1, 2004 made their submissions, the relevant portions  of which have inter-alia been summarized as follows:-

 

A.          Non-Compliance of Regulations 6(2) and 6(4) of the Takeover Regulations

i.             SIIL had made the relevant disclosures in terms of Regulations 6(2) and 6(4) of the Takeover Regulations to the stock exchanges but were not in a position to trace the relevant records/acknowledged copy of the disclosures so made to the exchanges because of the lapse of more than 7 years and the relocation of their office premises as also changes in the secretarial department including the change of company secretary.

ii.             In view of the same, the default in failing to submit the acknowledged copy may be condoned and no penalty may be levied under section 15(b) of the SEBI Act, 1992 especially since Regulation 6(2) and 6(4) required one time disclosures to be made while continuing disclosures which were required to be made under Regulation 8(3) of the Takeover Regulations, were regularly made by SIIL.

iii.             Thus the relevant information was made available to the shareholders and investors on and from September 1998 onwards i.e. the date when the disclosures under Regulation 8(3), were first made.

iv.             Even prior to that, the details of the shareholding of the promoters of SIIL was brought to the knowledge of the investors vide the EGM notice dated February 16, 1998 (copy of the notice was enclosed as proof).

v.             Without prejudice to the said contentions, there was no disproportionate gain or unfair advantage or any loss caused to any investors or group of investors.

 

 

vi.    Under the SEBI Regularization Scheme 2002 (Scheme) certain technical defaults while making or failing to make the disclosures under Regulations 6 & 8 were condoned upon payment of a token penalty of Rs.10000/-.  The underlying principle of the Scheme was that offences of a technical nature, which did not result in any loss to any investors or shareholder or which did not trigger any takeover bid, was condoned upon payment of a token penalty.

vii.   SIIL could not take advantage of the said Scheme, because they were not aware as to whether the said disclosures were made or not.

viii.   In any case, the default if any deserves to be condoned and no penalty should be levied on the basis of the principle laid down by the Supreme Court in the case of Hindustan Steel Limited Vs State of Orissa.  

B.                Non-Compliance of Regulation 7(3) of the Takeover Regulations;

i.       SIIL had issued 90 lacs convertible warrants on a preferential basis to Twinstar which were converted into equity shares in the year 2000. Consequently, the shareholding of Twinstar increased by 9.10%.

ii.      In terms of Regulation 7(3) of the Takeover Regulations, every company whose shares are acquired in the manner referred to in sub-regulation (1) shall disclose to all the stock exchanges on which the shares of the company are listed, the aggregate number of shares held by each of such persons within 7 days of the receipt of information under sub-regulation (1)

iii.              Thus sub-regulation (1) as it stood then provided that any acquirer who acquires shares or voting rights which (taken together with shares or voting rights, if any held by him ) would entitle him to hold more than 5% shares or voting rights in a company in any manner whatsoever shall disclose the aggregate of his shareholding or voting rights in that  company to that company

iv.                Thus sub-regulation (1) was applicable only in case of a person, acquiring for the first time more than 5% of shares or voting rights in the company. Any person already holding more than 5% of the shares or voting rights in a company is not required to disclose to the company, the details of any further purchase or sale made by it. 

v.                  Subsequently sub regulation (1A) was incorporated in the Takeover Regulations with effect from September 9, 2002 and provided that any acquirer who has acquired more than 15% but less than 75% of the shares or voting rights of the company shall disclose purchase or sell aggregating 2% or more of the share capital of the company to the company within 2 days of such purchase or sale.

vi.                Thus the disclosure obligation relating to the changes in holding of persons holding more than 5% of the shares of a company have only been introduced with effect from September 9, 2002. 

vii.             The fact that sub regulation (1A) was subsequently introduced supports the contention that under sub-regulation (1A) as it then stood, there was no need for a person holding more than 5% of the shares or voting rights in a company to disclose any subsequent purchase or sale.

viii.           As on the date of conversion of warrants, Twinstar was holding 30.77% of the shares or voting rights in SIIL i.e. more than 5% Thus upon conversion of the warrants, it increased its participation in the shares or voting rights by 9.10%.  Since Twinstar was already holding more than 5% of the shares or voting rights in the company, it was not bound to make any disclosure under sub-regulation (1) of the Regulation 7.

ix.               Consequently, SIIL was also not bound to make any disclosure under sub-regulation 7(3) of the Takeover Regulations

C.                Non-Compliance of Regulation 8(3) of the Takeover    Regulations

i.                   There was delay of 153 days in filing the disclosures with the stock exchanges as required under Regulation 8(3) of the Takeover Regulations in that the disclosures were filed with the exchanges only on September 30 instead of April 30.

ii.                 This fact was admitted by SIIL in their letter dated August 27, 2003 sent to SEBI.

iii.              The delay was due to the fact that as Regulation 8(3) was a new provision and such disclosures were made for the first time, the procedures involved were new to the company which was in the process of procuring the information from the Registrar.

 

iv.                However SIIL was now regular in making the disclosures under Regulation 8(3) of the Takeover Regulations.  

v.                  In view of the above submissions, all the alleged defaults may be condoned and no penalty may be levied and if considered necessary, the penalty be levied, in terms of the Scheme which prescribed a token penalty.

vi.                Even otherwise, the factors laid down under Section 15 J of the SEBI Act should be considered while adjudicating the quantum of penalty under Section 15A of the SEBI Act. Further, the provisions relevant to the penalty as it existed prior to October 9, 2002 should be levied u/s 15A(a) of the SEBI Act, ie., the law as it is existed on the day when the default was made. 

5.      It was submitted that for non compliance of Regulation 6(2) & 6(4), the maximum penalty could only be Rs.1,50,000/-. Yet considering the technical nature of the offence, the amount of penalty should be restricted to a token amount as prescribed in the Scheme and not the maximum penalty of Rs.1,50,000/- prescribed for non submission of any report or document under Section 15A(a) of the SEBI Act.

6.   For non compliance of Regulation 8(3) of the Takeover Regulations, the provisions of Section 15A(b) should be attracted where under, the penalty prescribed is Rs.5000/- per day for the default, which, for a delay of 153 days would work out to Rs.7,65,000/-. 

7.                 However, Section 15A(a) deals with failure to furnish any documents or returns, and the penalty prescribed there under is restricted to Rs.1,50000/-. As the penalty prescribed for delay in submission should not  exceed the penalty prescribed for failure of submission, the penalty amount if considered necessary to be imposed, should be computed to a maximum of Rs.1,50,000/-, while the penalty for non compliance of Regulation of 6(2) & 6(4) should be a token amount and not a maximum of Rs.1,50,000/-. 

8.     On the basis of the above submission, SIIL requested that as the defaults were procedural in nature and did not trigger an open offer under the provisions of the Takeover Regulations and since no disproportionate gain had been made by any person and no investor or group of investor had suffered any loss, no penalty should be levied.  SIIL also referred to the judgements relied upon by them and further requested for a personal hearing. 

 9.    In the interim period, vide the order of the Chairman, SEBI dated September 30, 2004, I was appointed as the Adjudicating Officer to enquire into the earlier mentioned acts of omissions and commissions of SIIL.

 

10.  Thereafter in terms of Rule 5(1) of the Rules, a notice of hearing dated November 01, 2004 was sent to SIIL advising them to attend the hearing proceedings to be held on November 8, 2004 which was subsequently postponed to November 22, 2004 and thereafter on their request to December 3, 2004.  

 

11.  On the said date, Mr  J C Periera, Counsel and Mr Vinay Gaokar, Group Company Secretary of SIIL appeared on behalf of SIIL along with Shri Shripal Lakdawala representing RSM &Co., the Chartered Accountants of SIIL before me and reiterated their contentions made earlier.

 

          CONSIDERATION OF ISSUES:

 

12.     I have taken into consideration the facts and circumstances of the case, the submissions advanced on behalf of SIIL, the material available on record including the documents and the case laws relied upon by them.

 

13.     The crux of the issue before me is whether SIIL, had complied with the disclosure requirements prescribed under Chapter II of the Takeover Regulations i.e. making the necessary disclosures to the exchanges on which the shares of SIIL are listed, in a timely manner as required under the relevant provisions of the Takeover Regulations. 

 

14.   While considering the same, it would be necessary to consider the following facts which are undisputed.

 

15.  SIIL issued to Twinstar during May 1998, 90,00,000 convertible warrants on a preferential basis. These warrants were converted into equity shares during the year 2000.  As a consequence of the said conversion, the holding of Twinstar in SIIL increased in the year 2000 from 30.77% of the voting rights in SIIL to 39.87% i.e. an increase of 9.10% of the voting capital of SIIL. 

 

16.  Consequently, SIIL was stated to be obligated to inter alia comply with Regulations 6(2), 6(4), 7(3) as well as Regulation 8 (3) of the Takeover Regulations which inter alia provide as under:

 

         Regulation 6(2); Every company whose shares are held by the persons referred to in sub-regulation (1) shall, within three months from the date of notification of these regulations, disclose to all the stock exchanges on which the shares of the company are listed, the aggregate number of shares held by each person.

 

         Regulation 6(4); Every company, whose shares are listed on a stock exchange shall within three months of notification of these regulations, disclose to all the stock exchanges on which the shares of the company are listed, the names and addresses of the promoters and/or person(s) having control over the company, and the number and percentage of shares or voting rights held by each such person.

 

The Takeover Regulations came into effect from February 20, 1997. 

 

Regulation 7(3); Every company whose shares are acquired in the manner referred to in sub-regulation (1) shall disclose to all the stock exchanges on which the shares of the company are listed, the aggregate number of shares held by each of such persons, within 7 days of the receipt of information under sub-regulation (1)

 

Sub-regulation (1) (as it stood then) Any acquirer who acquires shares or voting rights which (taken together with shares or voting rights, if any held by him) would entitle him to hold more than 5% shares or voting rights in a company in any manner whatsoever, shall disclose the aggregate of his shareholding or voting rights in that company to that company.

 

Regulation 8(3) Every company whose shares are listed on a stock exchange, shall within 30 days from the financial year ending March 31, as well as the record date of the company for the purposes of declaration of dividend, make yearly disclosures to all the stock exchanges on which the shares of the company are listed, the changes, if any, in respect of the holdings of the persons referred to under sub-regulation (1) and changes in shareholdings of promoters or persons(s) having control over the company as on 31st March.

 

17.            SIIL had allegedly failed to comply with the provisions above stated. The details of these alleged violations by SIIL are as under: 

 

Regulation/Sub Regulation

Due dt of  compliance

Actual dt of  compliance

Delay (in no of of days)

6(2)

20.05.1997

Not complied

--------

6(4)

20.05.1997

Not complied

---------

8(3)

30.04.1998

30.09.1998

153

 

·                    As regard Regulation 7(3) of the Takeover Regulations, SIIL contended that as they were not bound to comply with the provisions of the said Regulations and hence, they had not violated the provisions of the said Regulation.

   

18.   I have examined the contentions advanced by SIIL in the context of Regulation 7(3) and the accompanying circumstances and find merit in the argument advanced by them.

 

19.   From a reading of the said Regulation and sub-regulation (1), it does appear that sub-regulation (1) would be applicable only in case of a person, acquiring for the first time, more than 5% of shares or voting rights in the company. This is more than apparent from the fact that the criteria fixed, is the total shares or voting rights, taken together with the shares or voting rights if any held by him which “entitle” the holder of the said shares to hold ‘more than 5% shares or voting rights in a company’. Implicit herein is the intention that, the acquisition which entitles the holder to hold, more than 5% shares of the company, would be required to be disclosed in terms of sub-regulation (1). The subsequent acquisition by a person, who is already holding more than the threshold limit of 5% shares or voting rights in a company, would therefore not attract sub-regulation (1). Had the intention been otherwise, the expression “ additional 5% shares or voting rights” ought to have been incorporated which would entitle the holder of the said shares to hold more than the existing shares or voting rights held by him in a company. Consequently any person already holding more than 5% of the shares or voting rights in a company would therefore not be required to disclose to the company, the details of any further purchase or sale made by it. 

20.   In fact, it does appear that the subsequent incorporation of sub regulation (1A) in the Takeover Regulations with effect from September 9, 2002 satisfactorily dealt with the disclosure obligation relating to the changes in the holding of persons holding more than 5% of the shares of a company.

21.  In the facts of the case, as on the date of conversion of warrants, Twinstar were admittedly holding 30.77% of the shares or voting rights in SIIL i.e. more than 5% Thus upon conversion of the warrants, they increased their participation in the shares or voting rights of SIIL by 9.10%.  Since Twinstar was already holding more than 5% of the shares or voting rights in the company, it was not bound to make any disclosure under sub-regulation (1) of the Regulation 7.

22.  Accordingly, I hold that SIL was not bound to make the disclosures under Regulation 7(3) of the Takeover Regulations.

23.   As regards the issue of non-compliance of Regulation 6(2) & 6(4) of the Takeover Regulations, I have taken into account the contentions advanced on behalf of SIIL to the effect of having made the necessary disclosures but being unable to trace the acknowledged copy of the records sent to the exchanges, allegedly on account of the passage of a considerable period of seven years, relocation of the company and in the process, the loss of certain company records as well as changes in the secretarial department.

 

24.   Notwithstanding the same, the undisputed fact remains that no documentary evidence has been submitted by SIIL at any time during the course of proceedings, evidencing the compliance of the said Regulations. Keeping aside the fact that they ought to have maintained such documents and even assuming for a while that the required disclosures were made, in the absence of any document evidencing the same or in the absence of any detail available on record viz; the dates when the disclosure/information was furnished or any other information relevant to the case, it would not be wrong to conclude that there has been a non compliance by SIIL of the provisions of Regulation 6(2) & 6(4) of the Takeover Regulations.  Mere contentions stating compliance of the Regulations, without furnishing the documentary proof to substantiate the same would not absolve SIIL from the charge of non compliance of the said Regulation.

 

25.   In the case of Regulation 8(3) of the Takeover Regulations, SIIL had admitted to the delay of 153 days in making the necessary disclosures, which has been attributed to the fact of the novelty of the Takeover provisions.

 

26.   However apart from stating that the said Regulations were at a nascent stage, nothing has been brought on record by SIIL to indicate that the lapse on their part was inadvertent and unaccompanied by any intent to deliberately delay due adherence to the provisions of law quoted above. Moreover, considering the extent of the delay i.e. 153 days, the said lapse cannot be ignored. 

 

 27.   One of the objectives of the Takeover Regulations is to protect the rights of the investors through prompt disclosures. The purpose of making these timely disclosures to the stock exchanges is meant to ensure transparency in transactions. These disclosures made to the stock exchanges in turn provide inputs to them to monitor the transactions and ensure frequent dissemination of the information relevant to the company for the benefit of the shareholders of the company and the public at large.  From the facts earlier stated, there is clearly a lapse on the part of SIIL in adhering strictly to the provisions of Regulation 6(2) and (4) and Regulation 8(3) of the Takeover Regulations, and it appears that they have as a last resort raised the plea of  technicality and the issue of their bonafides.

 

28.   As I examined the plea that while Regulation 6(2) and 6(4) required one time disclosures to be made, continuing disclosures which were required to be made under Regulation 8(3) of the Takeover Regulations, were regularly made by SIIL and thus the relevant information was made available to the shareholders and investors on and from September 1998 onwards i.e. the date when the disclosures under Regulation 8(3), were first made.

29.  That would certainly appear to be an idealistic argument. However any deviation from the compliance requirements of the Regulations is bound to affect the interest of the investors, in as much as these initial and continual disclosures not only ensure the transparency and disclosures as regards the share holding/voting rights of specified persons but also enables timely dissemination of the said information to the shareholders and the public at large by the company, by way of submissions of the information to the stock exchanges where the shares of the company are listed.  While the failure to submit the required information and the subsequent loss if any caused to the investors is not tangible and cannot be specifically computed in monetary terms, the fact remains that every statute and regulatory provisions contained therein have a specific intent and purpose behind its enactment and the incorporation of the said provisions. The very purpose of enacting any legislations is due adherence to the provisions /procedure contained there under.  If no cognizance were to be taken of any breach of these provisions and no liability fixed there upon, the entire purpose of incorporating the provisions of the said Regulations would become redundant. 

 

30.   Moreover it is not that SIIL had a series of procedures to follow and that while a part of the procedure was complied by them, the remaining was not complied, thereby lending credence with their contention of having acted in a bonafide manner.  On one hand, SIIL have contended that they have complied with Regulation 6(2) and 6(4) of the Takeover Regulations but have no documents to prove the same, on the other hand they have contended (as brought out in the reply dated June 01, 2004) that they were not aware as to whether they had made the requisite disclosures. These defenses do not seem credible and perhaps indicate their apathy in conforming to Regulatory Provisions. 

 

31.    I have studied the plethora of judgments both of the Supreme Court as well as that of the Bombay High Court and the Patna High Court relied upon by SIIL.   

 

32.   The principles laid down in the said cases according to the facts and circumstances of the cases which reiterate to a certain extent the dictum laid down by the Supreme Court, stress upon the issue of non levy of penalty especially in cases where there was a technical breach coupled with a lack of intention to commit the said breach.

 

33.     The principle laid down by the Supreme Court in the case of Hindustan Steel Ltd vs. State of Orissa considerably deals with the issue of imposition of penalty and provides that the penalty to be imposed for failure to perform a statutory obligation, is a matter of discretion of the authority to be exercised judiciously after considering all the relevant circumstances.

 

34.     However, there is no obligation not to impose any penalty whatsoever upon an entity especially in cases where there was a technical breach, which could have been rectified.

 

35.  In the instant case, the regularization scheme admittedly provided the said opportunity and SIIL were aware of the existence of the said Scheme which was in force from October 1, 2002 to January 31, 2003 to enable listed companies which had failed to comply with or complied with the requirements of Regulations 6[2], 6[4] and 8[3] of the Takeover Regulations belatedly. Consequently, an opportunity was available to all listed companies as well as SIIL for regularization of the non-compliance with Regulations 6 and 8 of the Takeover Regulations for the years 1997 – 2002. Keeping in mind the fact that “they were not aware of the fact that the disclosures were made or not” and in the absence of any proof in their possession to show compliance of the Regulations, SIIL ought to have availed this opportunity to regularize their acts.  However SIIL admittedly did not participate in the scheme. In fact, I have it on record, that in cases where certain entities had no proof to substantiate their claim, they took part in the regularization scheme. Even during the course of the personal hearing, SIIL specifically stated that no effective due diligence was carried out by them which could draw their attention to the above referred to non–compliances. Thus from the manner in which SIIL acted, it can be stated that SIIL did not really act from a bonafide belief.

 

36.   In view of the above, the case laws cited by them have no relevance to the present case and no case has been made out by SIIL for not imposing any penalty whatsoever and dropping the present proceedings altogether. To my mind this case definitely calls for the imposition of at least a token penalty.

 

37.   In fact, SIIL have themselves requested that no penalty be levied, keeping in mind the technical nature of the offence and that if at all, only a token penalty be levied, considering that the violation of such technical nature were likely to be condoned under the Scheme, by the imposition of Rs.10,000/- for the non compliance in the case of Regulation 6(2) and (4) and Regulation 8(3) of the Takeover Regulations.

 

38.   Failure to furnish the information, return etc or delay to make requisite disclosures attracts monetary penalty as specifically provided in Section 15A of the SEBI, Act, 1992 which as on the date of the commission of offence reads as follows:

 

“If any person who is required under this Act, or any rules or Regulations made there under –

 

a.       to furnish any document, return or report to the Board, fails to furnish the same, he shall be liable to a penalty not exceeding one lakh and fifty thousand rupees for each such failure;

b.      to file any return or furnish any information, books or other documents within the time specified therefore in the Regulations, fails to file return or furnish the same within the time specified thereof in the Regulations, he shall be liable to a penalty not exceeding five thousand rupee for every day during which such failure continues;

c.       to maintain books of accounts or records, fails to maintain the same, he shall be liable to a penalty not exceeding ten thousand rupees for every day during which the failure continues;

 39.   Without prejudice to the above, Parliament in its wisdom has directed certain factors to be taken into account by the adjudicating officer, before imposing a penalty as is evident from the provisions of Section 15J of the Act  which also find mention in Rule 5(2) of the SEBI (Procedure for holding

 

 

enquiry and imposing penalty by the Adjudicating Officer) Rules, 1995, i.e., the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; the amount of loss caused to an investor or group of investors as a result of the default and the repetitive nature of the default.

 

40.    Upon perusal of the provisions of Section 15J, it is clear that the adjudicating officer is required to have due regard to the factors stated in the section.  The same is a direction and not an option, which is however to be exercised with due regard to his discretion. This discretion is to be exercised judiciously, depending upon the facts and circumstances of each case as well as after analysing of all the relevant material available on record especially in the case of failure to perform statutory obligations.

 

41.     It does not appear as if SIIL enjoyed any gain or unfair advantage as a result of the said default. However it cannot be denied that the said default would have certainly caused a certain amount of disadvantage to their shareholders and the investor class as a whole.  Moreover, the non compliance of Regulation 6(2) and (4) is continuing till date although Regulation 8(3) was complied belatedly. 

 

42.     I have studied the terms of the Scheme where under the amount payable for regularizing non-compliances and belated compliances of Regulations 6 and 8 was  Rs.10,000/- for each violation, per year. 

 

 

 

43.     Hence on a judicious exercise of the discretion conferred upon me, bearing in mind the factors enumerated above as well as after taking into consideration, the facts and circumstances of the present case as well as after analysing all the material available on record, the rationale behind the requirement of making these disclosures, I in exercise of the powers conferred upon me under Rule 5 of the SEBI (Procedure for Holding Enquiry and Imposing Penalty by the Adjudicating Officer) Rules, 1995 think it appropriate to invoke the terms of the said Scheme and impose an amount of Rs 20,000/- as penalty upon SIIL   for the total non compliance of Regulation 6(2) and (4) of the Takeover Regulations for the year 1998.  As regards the non compliance of Regulation 8(3) of the said Regulations, I am inclined to hold that although the penalty need not be imposed in terms of the quantum provided in Section 15A of the Act, the imposition of a token penalty is very much necessitated and hence am inclined to arrive at a equitable resolution of the issue on hand and in the interest of justice, equity and good conscience think it appropriate to levy a penalty of Rs 80,000/- upon SIIL for the dealy in complying with the provisions of Regulation 8(3) of the Takeover Regulations within the time specified in the said Regulations.   

 

44.  Consequently Sterlite Industries (India) Limited is hereby directed to pay a total amount of Rs 1,00,000/- (Rupees One Lakh Only) i.e. Rs 20,000 for the non compliance of Regulations 6(2) and (4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 and Rs 80,000/- for the delay in complying with the provisions of Regulation 8(3) of the said Regulations within the time specified in the said Regulations.

 

45.    The penalty amount shall be paid within a period of 45 days from the date of receipt of this order through a cross demand draft drawn in favour of “SEBI- Penalties remittable to the Government of India’ and payable at Mumbai which may be sent to Shri.S.V.Muralidhar Rao, General Manager, Securities and Exchange Board of India, Mittal Court, B Wing, 224 Nariman Point, Mumbai – 400021.

 

 

 

PLACE : MUMBAI                                         G. BABITA RAYUDU

DATE  : APRIL 06, 2005                              ADJUDICATING OFFICER