SAT upholds penalty against Akriti Global Traders

The Securities Appellate Tribunal (SAT) today upheld Sebi's order against Akriti Global Traders in a case related to failure to comply with disclosure norms.
Akriti had received shares of SRS Real Infrastructure in February, 2013, which had hiked its stake in the company by over 5 per cent and triggered the obligation for the entity to make disclosures to stock exchanges within a stipulated time.
However, Akriti failed to make disclosures in a timely manner and market regulator Sebi imposed a penalty of Rs 4.5 lakh in December 2013 for the same.
Subsequently, Akriti filed an appeal before SAT against Sebi's ruling in the case.

In an order today, SAT said that Akriti had admitted to the delay in making disclosures made to stock exchanges.
"Argument of appellant that the delay was unintentional and that the appellant has not gained from such delay and therefore penalty ought not to have been imposed is without any merit," SAT said.

"Firstly, penal liability arises as soon as provisions under the regulations are violated and that penal liability is neither dependent upon intention of parties nor gains accrued from such delay," it added.
According to SAT, Sebi had considered all mitigating factors before imposing the penalty of Rs 4.5 lakh on the entity which "cannot be said to be excessive or unreasonable".

Prior to February 14, 2013, Akriti Global held 94.71 lakh shares of SRS representing 4.71 per cent stake in the company.
Pursuant to a scheme of amalgamation approved by the Delhi High Court the shareholders of SRS including Akriti had become entitled to receive additional shares of the company.
Accordingly, additional shares were received by appellant on two dates -- February 14, 2013 and February 21, 2013.
On February 14, 2013, Akriti had got shares amounting to 0.74 per cent stake in the company that led to a hike in its holding to 5.45 per cent.
Later on February 21, last year, the entity had received additional shares that increased its stake in SRS from 5.45 per cent to 8.15 per cent.