SAT upholds Sebi order against 3 entities in Axon case

The Securities Appellate Tribunal has upheld a Sebi order against three entities for failing to make public announcement for acquiring shares of Axon InfoTech.

In February last year, the market regulator had imposed a penalty of Rs 12.57 lakh each on -- Giriraj Kishore Agarwal, Golden Steel Industries and Handful Investrade -- after it found that in concert with few others they had bought 32.02% stake in Axon way in 2006, without making a public announcement as required under the norms.

The three entities had challenged Sebi's ruling in the matter before SAT.

In an order today, SAT ruled that the three entities had "undoubtedly violated the provisions of law and they have been rightly held guilty of the same by the learned adjudicating officer (of Sebi) by imposing the monetary penalty in question on all the eight entities, including three appellants.

"There is no legal infirmity attached to the impugned order and the same is hereby upheld."

The Sebi probe related to the dealings in the shares of Axon from March 17 to September 19, 2006.

Sebi had found that the eight entities "acting in concert with each other", had together acquired 32.02% shares of the company on April 5, 2006 but they failed to make the required public announcement as specified under the norms.

As per the norms, a public announcement is required when the acquisition of shares in a company by a person or person acting in concert crosses the limit of 15%.