Adjudication Order in respect of Shri Anurag Agarwal in the matter of Sterling Green Woods Ltd

BEFORE THE ADJUDICATING OFFICER
SECURITIES AND EXCHANGE BOARD OF INDIA
[ADJUDICATION ORDER NO. Order/KS/AE/2020-21/9412]

UNDER SECTION 15-I OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ WITH RULE 5 OF SEBI (PROCEDURE FOR HOLDING INQUIRY ANDIMPOSING PENALTIES) RULES, 1995 IN RESPECT OF SHRI ANURAG AGARWAL (PAN – ACDPA4964G) IN THE MATTER OF STERLING GREEN WOODS LTD.

 

BACKGROUND
1. Securities and Exchange Board of India (hereinafter referred to as “SEBI”) carried out an investigation in the scrip of Sterling Green Woods Ltd (hereinafter referred to as “Company / SGWL”) during the period from November 06, 2009 to December 02, 2009 (Investigation Period). It was observed that Shri Anurag Agarwal (hereinafter referred to as “Noticee”) who was Managing Director of SGWL was the major net seller in the scrip of SGWL during the Investigation Period. It was observed that the Noticee was holding 5,00,000 shares (11.79% of the total paid up capital of the company) of SGWL as on September 2009 quarter. The Noticee sold 2,29,000 shares on November 30, 2009, 1,91,991 shares on December 01, 2009, and 75,038 shares on December 02, 2009. Thus, Noticee was observed to have sold a total of 4,96,029 shares on the aforesaid 3 dates, and subsequently, the remaining 3,971 shares were sold by the Noticee on December 09, 2009, thereby disposing all his holding in SGWL. It was observed that the Noticee was required to make necessary disclosures under Regulation 7(1A) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as “SAST Regulations, 1997”) with respect to his sale aggregating two percent or more of the share capital to the company and the stock exchanges. However, the Noticee has not done so. Thus, the Noticee was alleged to have violated the provisions of Regulation 7(1A) of SAST Regulations, 1997.

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