SAT sets aside Sebi ruling against Rajoo Engineers' promoter

Securities Appellate Tribunal (SAT) has quashed Sebi's ruling against Rajoo Engineers' promoter while asking the market regulator to pass fresh order in the case related to violation of disclosure norms.
Securities and Exchange Board of India (Sebi) in January had imposed a penalty of Rs 12 lakh on Devyani Chandrakant Doshi for failing to make necessary disclosures to the company with respect to hike in her stake in the firm after she had received certain shares from her husband.
Following the Sebi order, Doshi had filed an appeal with SAT, challenging the regulator's ruling in the matter.
In an order dated May 8, SAT said the "impugned order (by Sebi) dated January 23, 2014 is quashed and set aside and the matter is restored to the file of adjudicating officer of Sebi for passing fresh order on merits and in accordance with law as expeditiously after giving an opportunity of personal hearing to the appellant".

Doshi had submitted to SAT that the acquisition of shares "was by way of transmission and not by transfer" and therefore provisions under Sebi norms did not apply in the case.
SAT said that as "there was no specific finding relating to the alleged violation on account of acquisition of shares by transmission" it would be proper to set aside the order and remand the matter back to Sebi.
It was earlier found by Sebi that Doshi who was holding 13.45 lakh shares (3.66 per cent) in Rajoo Engineers as on February 6, 2013, received another 27.77 lakh shares through an open market route from her husband Chandrakant Nanalal Doshi which resulted in an increase in her holding to over 5 per cent in the company.

According to Sebi's norm, promoter of a listed firm is required to disclose to the company and the concerned bourse about change in holdings from the last disclosure in case the change exceeds Rs 5 lakh in value or one per cent of total shareholding, whichever is lower.