Adjudication Order in respect of Ms. Kalavati Kanakia in the matter of KBS India Limited.

Last updated: 22 October 2020

Save Share

Quick Summary

Ms. Kalavati Kanakia has been penalised by the Securities and Exchange Board of India (SEBI) for failing to disclose her increased shareholding in KBS India Limited. Her stake rose from 0.16% to 5.32% on December 15, 2016, crossing the 5% threshold which required disclosure within two working days. SEBI found that this necessary disclosure was not made, leading to a violation of SAST Regulations.

Court :
SEBI

Brief :
Securities and Exchange Board of India ("SEBI") pursuant to the periodic examination of DWBIS alerts observed a non-disclosure based alert was generated by the system in the scrip of KBS India Limited (‘Target Company/TC/KBS’), a company having its shares listed on the Bombay Stock Exchange Limited (hereinafter referred to as ‘BSE’), which mentioned about increase in shareholding by Ms. Kalavati Kanakia (hereinafter referred to as “Noticee” or by her individual name) part of the public shareholders in the target company from 0.16% to 5.32% shares vide transaction dated December 15,2016.

Citation :
[ADJUDICATION ORDER NO. EAD-9/VKV/NK/2020-21/ 9406]

BEFORE THE ADJUDICATING OFFICER
SECURITIES AND EXCHANGE BOARD OF INDIA
[ADJUDICATION ORDER NO. EAD-9/VKV/NK/2020-21/ 9406]
UNDER SECTION 15 I OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 ("SEBI ACT") READ WITH RULE 5 OF SECURITIES AND EXCHANGE BOARD OF INDIA (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY ADJUDICATING OFFICER) RULES, 1995)

In respect of:
Ms. Kalavati Kanakia
PAN – AAHPK3948A

In the matter of KBS India Limited

Facts of the Case:

1. Securities and Exchange Board of India ("SEBI") pursuant to the periodic examination of DWBIS alerts observed a non-disclosure based alert was generated by the system in the scrip of KBS India Limited (‘Target Company/TC/KBS’), a company having its shares listed on the Bombay Stock Exchange Limited (hereinafter referred to as ‘BSE’), which mentioned about increase in shareholding by Ms. Kalavati Kanakia (hereinafter referred to as “Noticee” or by her individual name) part of the public shareholders in the target company from 0.16% to 5.32% shares vide transaction dated December 15,2016.

2. Since the holding of the Noticee crossed 5% of share capital of the TC, the Noticee was required to make the necessary disclosures as prescribed under the SAST Regulations within two working days, i.e. by December 19, 2016 (December 17, 2016 and December 18, 2016 being Saturday and Sunday). However, it was observed that the Noticee had failed to make the said disclosures. BSE vide its communication dated December 03, 2020 has confirmed that desired disclosure by Noticee was not received by it. Hence it was alleged that Noticee had not made the relevant disclosures and hence violated Regulation 29(1) r/w regulation 29(3) of SAST Regulations.

To know more in details find the attachment file