The price of equity share of a listed company viz. NextDial Ltd. (NDL) increased from ₹10 to high of ₹50 i.e. a rise of 500% during the period 1st April, 2018 to 30th Sept., 2018. NDL had entered into a Share Purchase Ag

CS Executive · Securities Laws and Capital Markets · PYQS · June 2019
The price of equity share of a listed company viz. NextDial Ltd. (NDL) increased from ₹10 to high of ₹50 i.e. a rise of 500% during the period 1st April, 2018 to 30th Sept., 2018. NDL had entered into a Share Purchase Agreement (SPA) with the proposed acquirer(s) to acquire 40% of the subscribed equity share capital as of 31st Aug., 2018 which would result in change of management. This initial discussion on the deal was made on 1st April, 2018 but SPA was signed on 25th April, 2018. During 1st April, 2018 to 30th Sept., 2018, the promoter and his wife dealt in the script of NextDial Ltd. Referring to the provisions of SEBI (PIT) Regulations, answer the following: (iv) What are the factors to be taken into account by the adjudicating officer while imposing penalty for the act?

Answer & Explanation:

While imposing monetary penalty, it is obligatory to consider the factors stipulated in Section 15J of the SEBI Act, 1992 which reads as under: the amount of disproportionate gain or unfair advantage, whenever 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; the repetitive nature of the default.

Topics: SEBI Act, 1992

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