BEFORETHEADJUDICATINGOFFICER

SECURITIESANDEXCHANGEBOARDOFINDIA
ADJUDICATIONORDERNO.MAA/AO/DL/67/201516
UNDER SECTION 15I OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 READ
WITHRULE5OFSEBI(PROCEDUREFORHOLDINGINQUIRYANDIMPOSINGPENALTIESBY
ADJUDICATINGOFFICER)RULES,1995
Inrespectof:
SL.No. NameoftheEntity
1
Mr.BhushanKumarNarula

PAN
AABPN9040L

OrderNo.
MAA/AO/DL/6/201516

AAEPN0229N

MAA/AO/DL/7/201516

Ms.SidhiNarula

IntheMatterof:
M/sSilverSmithIndiaLtd.
FlatNo.620,HemkuntChmabers,
89NehruPlace,
NewDelhi110019

Background

1.

BasedonthealertsgeneratedbythesurveillancesysteminthemonthofOctober2012,it
was identified M/s Silver Smith India Ltd. (herein after referred as the Company) for
further investigation. The investigation in respect of buying, selling and dealing in the
shares for period from October 01, 2012 to December 31, 2012. Mr. Bhushan Kumar
NarulaisthepromoterdirectoroftheCompany,andMs.SidhiNarulaisthepromoterof
the Company (hereinafter collectively referred to as the Noticees). The Noticees had
acquired shares of the Company October 01, 2012 to December 31, 2012 and have not
made any disclosures with respect to the acquisitions as required under the SEBI

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 1 of 15

October 21 2015

(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011(hereinafterreferred
toasSASTRegulations,2011')and/orSEBI(ProhibitionofInsiderTrading)Regulations,
1992(hereinafterreferredtoasPITRegulations),asapplicable.

2.

The findings of the examination led to the allegation that, Mr. Bhushan Kumar Narula
(hereinafterreferredtoasMr.B.KNarula)NoticeeNo.01hadacquired1,82,551shares
(4.41%ofthepaidupsharecapital)oftheCompany,therebyviolatingtheprovisionsof
Regulation 13 (3), (4), (4A) read with 13 (5) of PIT Regulations and Ms. Sidhi Narula,
Noticee No. 2 had acquired 56,612 shares (1.4% of the paidup share capital) in
September 2012 quarter without making any disclosure thereby violating provisions of
Regulation29(2)readwith29(3)oftheSASTRegulations2011aswellasRegulation13
(3),(4),(4A)readwith13(5)ofthePITRegulations.

3.

SEBI, therefore, initiated adjudicating proceedings under the Securities and Exchange
BoardofIndiaAct,1992(SEBIAct)toinquireintoandadjudgeundersection15A(b)of
theSEBIAct,theaforementionedallegedviolationsoftheprovisionsofRegulation13(3),
(4),(4A)readwith13(5)ofPITRegulationsandprovisionsofRegulations29(2)readwith
29(3)oftheSASTRegulations,committedbytheNoticees.

AppointmentofAdjudicationOfficer

4.

Ms. Anita Kenkare was appointed as Adjudicating Officer vide order dated August 14,
2013undersection15IofSEBIActreadwithSection19oftheSEBIAct,underrule4of
SEBI(ProcedureforHoldingInquiryandImposingPenaltybyAdjudicatingOfficer)Rules,
1995(hereinafter referred to as the Adjudication Rules) to inquire into and adjudge
under section 15A (b) of the SEBI Act the alleged violations/noncompliance of the
provisionsofSEBIAct,PITRegulationsandSASTRegulationsbytheNoticees.

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 2 of 15

October 21 2015

Subsequently,thePursuanttothetransferofcasehasbeentransferredtoSEBI,Northern
Regional Office, New Delhi and, the undersigned has been appointed as Adjudicating
OfficervideorderdatedDecember09,2014.

ShowCauseNotice,ReplyandPersonalHearing

5.

A Show Cause Notice (hereinafter referred to as SCN) dated February 21, 2014 was
issued to the Noticees under rule 4 of the Rules Adjudication Rules by the erstwhile
Adjudicating toOfficerto show cause as to why an inquiry should not be initiated and
penalty not be not imposed against them under section 15A (b) of the SEBI Act for the
allegedviolationsspecifiedintheSCNandthesamewasreturnedundelivered.

6.

InIntheinterestofnaturaljusticeandinordertoconductaninquiryintermsofruleRule
4(3)oftheRules,theNoticeeswasgrantedanopportunityofpersonalhearingbeforethe
erstwhileAdjudicatingOofficeronJune11,2014atSEBI,MumbaivideNoticeofhearing
datedMay08,2014.ThesaidHearingnoticealongwiththecopyofSCNissuedwassent
ontheaddressofM/sJyotiPortfolioLtd,.thebrokerofthecompanyandsamewasduly
servedtotheNoticeesonMay14,2015

7.

In response to the aforesaid SCN and notice of hearing, Mr. B.K Narula Noticee No. 01,
NotividelettersdatedMayMay23,2014,videletterdatedMay,232015,informedabout
NoticeesmailingaddressalongwithPanCardcopy.

7.8. VideletterdatedJune07,2014,theNoticeesfiledthereplyonbehalfofalltheNoticees
whichstatedasunder:

TheNoticeeshaddulyinformedtheBombayStockExchange(BSE)aboutthetransfer
ofsharesfrompromotertopromoterduringtheperiodofOctober,2012toDecember
2012,sowearenotatfaultandwehaveaskedthemwhytheyhavenotupdatedBSE
website.

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 3 of 15

October 21 2015

Copy of the letter and intimation sent to BSE, regarding transfer of shares dated
October06,2012October10,2012andDecember08,2012,werealsosubmitted.
2.
Noticees also informed that the financial health of the Company is not good and
requestedtoshifthearinginDelhi.
1.

8.9.

However,videemaildatedJune11,2014theNoticeeswereinformedthattherequest
cannotbeaccededtoandaccordingly,theNoticeeswasgrantedanotheropportunityof
personal hearing before the erstwhile Adjudicating Oofficer on July 04, 2014 at SEBI,
MumbaivideNoticeofhearingdatedJune18,2014.

9.10. In response to the aforesaid notice of hearing,the Noticeesvide letter dated July 01,
2014, the Noticees requested for reschedulement of hearing on medical grounds.
However, no You have citied medical grounds for not traveling to Mumbai but any
medical certificate/doctors letter of advice is was not attached in support of the
sametheirreasonofmedicalgroundsfornottravellingtoMumbai.Pursuanttothesame,
vide letter dated July 09, 2014 2014 theythe Noticees were informed that the
opportunity for personal hearing granted to you them is a right that you they can
renounce and ifand ifyou wishthey wish to make any submissions Inin their your
defense,thesamecanbemadeinwritingwritingas,itisnotnecessarytoappearbefore
theAdjudicationOfficer.Itwasalsoinformedthatyoutheymayalsochoosetoappointa
representativetoappearforpersonalhearingontheirbehalf.However,noreplywasof
thesamewasreceivedfromtheNoticees.

10.11. In In the interest of natural justice, the Noticees were granted final opportunity of
personalhearingbeforetheAdjudicatingerstwhileAdjudicatingOofficeronSeptember25
2014atSEBI,MumbaivideNoticeofhearingdatedAugust28,2014.

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 4 of 15

October 21 2015

11.12. InresponsetotheaforesaidNoticedatedSeptember25,2014,Mr.B.K.Narulafiledthe
replyonbehalfofalltheNoticeeswhichstatedasunder:

TheNoticeesarecontemplatingfilinganApplicationforsettlementunderSecurities
and Exchange Board of India (Settlement of Administrative and Civil Proceedings)
Regulations,2014andsamewillbesubmittedwithintheperiodof30daysfromthe
dateofHearingNotice,andrequestedtodefertheproceedingsagainsttheNoticees
tillthedisposalofthesaidApplication.

12.13. However,nosuchapplicationregardingsettlementunderSecuritiesandExchangeBoard
of India (Settlement of Administrative and Civil Proceedings) Regulations, 2014
(hereinafter referred to as the "Settlement Regulations") was received from the
Noticees. Hence, tThe Noticees were granted another opportunity of personal hearing
before the erstwhile Adjudicating Officer on November 19, 2014 at SEBI, Mumbai vide
Notice of hearing dated October 20, 2014, where Noticees were alsoinformed that on
filing of consent application, the Adjudication proceedings will continue, and only the
passingoftheAdjudicationOrderwillbekeptinabeyancetillthecompletionofconsent
proceedings.

13.14. In response, Mr. B K. Narula, Vide email dated November 14, 2014, informed that
Application for settlement underRegulation 3 of Settlement Regulations has been
posted.Onseekingconfirmationfromthedepartmentconcernedregardingsuchconsent
application,itwasunderstoodthattheapplicationfiledbyNoticeeswasreturnedback
onDecember10,2014forrectificationofsomedeficienciesandasperRegulations3(6)
of the Settlement Regulations, the returned application should be sent back within
fifteendaysfromthedateofcommunicationofrejection.However,theApplicationwas
not resubmitted by the Noticees after rectification, so farectification. r. Accordingly, a
finalopportunityofpersonalhearingwasgrantedonJanuary22,2015atSEBIMumbai
videhearingnoticedatedJanuary06,2015.Subsequently,thesamewascancelledand
NoticeeswereinformedaboutthecancellationvideemaildatedJanuary08,2015.

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
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October 21 2015


14.15. After appointment of the undersigned, another opportunity of personal hearing was
granted to the Noticees on March 16, 2015 at SEBI NRO, New Delhi vide Notice of
hearingdatedMarch05,2015.

15.16. Mr. B.K. Narula, on behalf of all the Noticeesattended the hearing and sought time to
submit specific submissions in the matter and requested for adjournment. Acceding to
therequest,theNoticeeshearingwasrescheduledtoMarch24,2015attheNorthern
Regional Office of SEBI at New Delhi and Noticees were further advised to file their
submissionslatestbyMarch19,2015.

16.17. In response to the allegations, vide letter dated March 19, 2015 Mr. B.K. Narula filed
replyonbehalfoftheNoticeesandmadesubmissions,whichinteralia,statedasunder:

ItisallegedintheSCNthatNoticeeshasviolatedprovisionsofSASTRegulations&PIT
Regulations, but we dispute and deny that there is a need for any adjudication
proceedings.

We dispute and deny that Mr. Bhushan Kumar Narula acquired any shares of the
Company. The transactions mentioned in the Table at para 3 of the SCN factually
incorrectason10.10.2012&07.12.2012theshareswerebroughtinthenameofB.K
Narula HUF and not in the name of Bhushan Kumar Narula individual. The factual
positionisasunder:

Date

Clientname

10.10.2012 BhushanKumar
Narula
07.12.2012
Bhushan
Kumar
Narula

Gr. Buy CorrectName

Volume
1,02,950 BKNarulaHUF
21,551

B K Narula 08.12.2012
HUFB
K
NarulaHUF

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 6 of 15

Date
of %
Intimation
10.10.2012 >2%
<1%

October 21 2015

05.10.2012 Bhushan
Narula

Kumar 30,000

B K Narula 06.10.2012
HUFB K Narula
HUF

<1%

08.10.2012 Bhushan
Narula

Kumar 28,050

B K Narula 10.10.2012
HUFB K Narula
HUF

<1%

It is submitted that in respect of the table mentioned herein, only the transaction
dated 10.10.2012 exceeded 2% and same was duly intimated vide letter dated
10.10.2012.Moreover,everytransactioninthetablewasintimatedtoBSE.

ThetransactionsinthenameofMs.SidhiNarulaneverexceeded1%,tableisprovide
herein:

Date

Clientname

Gr.BuyVolume

DateofIntimation %

05.10.2012 SidhiNarula
30,000
06.10.2012
<1%
08.10.2012 SidhiNarula
25,000
10.10.2012
<1%
23.11.2012 SidhiNarula
500
19.12.2012
<1%
26.11.2012 SidhiNarula
500
19.12.2012
<1%
27.11.2012 SidhiNarula
100
19.12.2012
<1%
12.12.2012 SidhiNarula
100
19.12.2012
<1%
18.12.2012 SidhiNarula
11
19.12.2012
<1%
19.12.2012 SidhiNarula
1
19.12.2012
<1%

Thus the aforesaid transactions were within 1% there can be no violation to either
SASTRegulations,2011orPITRegulations1992,whichprovidesfordisclosuresincase
acquisition of 2% and 1% shareholding respectively. Moreover, despite the
acquisitions less than 1% same was duly informed to the stock exchanges within
stipulatedtime.

WithregardtopurchaseofsharesbyMr.BhushanKumarNarulaasmentionedinthe
impugned para 5 of the SCN, . Iit is submitted that the SCN is totally void and
incorrect,asnotransactionhaseverbeenmadebyMr.BhushanKumarNarulainhis
personalcapacity.Thefactualpositionisasfollows

PANID
Name
Gr.BuyVolume CorrectName
AAAHB4455L

BhushanKumarNarula 1,24,501

B.KNarulaHUF

AABPN9040L

BhushanKumarNarula 58,050

RidhiNarula

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
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October 21 2015

AAEPN0229N

SidhiNarula

56,612

SidhiNarula

Inentryno.1oftheabovetablethePANIDprovidedisofB.KNarulaHUF,however
thenamementionedisofMr.BhushanKumarNarula.Inentryno.2thesaidshares
weretransactedbyMs.RidhiNarulanotbyMr.BhushanKumarNarula,eventhePAN
IdprovidedisofMs.RidhiNarulaandnotofMr.BhushanKumarNarula.

InPara6oftheSCN,Mr.BhushanKumarNarulaholdingis17.04%whichallegedto
have been increased by acquisition of 4.41 % shares to 21.25% shares which is
incorrect. It is submitted that Mr. Bhushan Kumar Narula has neither acquired nor
soldhissharesinhisnamesince1996andevenhisholdingis17.04%whichhasnever
changed.

17.18. Mr.B.K.NarulawaspresentduringthepersonalhearingonMarch24,2015alongwith
Mr. SangramPattnaik, Authorized Representative (AR) of the Noticees. The Authorized
RepresentativereiteratedthesubmissionsmadebytheNoticeesvideletterdatedMarch
19, 2015 and further undertook to submit certain documents as directed during the
hearing.

18.19. The Noticees was were granted another opportunity of personal hearing before the
Adjudicating Officer on October 28, 2015 at SEBI, NRO vide Notice of hearing dated
September 22, 2015 and Noticees they were advised to submit Demat account
statement along with shareholding pattern of the Company for the period of October
2012toDecember2012Quarter.

19.20. Mr. B.K Narula, Noticee No. 1 being attended the scheduled hearing and submitted
necessarydocumentsasrequiredvidenoticeofhearingdatedSeptember22,2012.The
Noticee stated that he is a law abiding citizen and had never intended to make any

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 8 of 15

October 21 2015

violation under any act. The Noticee also stated that if any documents are required in
future,sameshallbeprovidedwithinthespecifiedtime.

IssuesforConsideration

20.21. After perusal of the material available on record, I have the following issues for
consideration,
a) WhethertheNoticeeshaveviolatedprovisionsofprovisionsofRegulation29(2)read
with29(3)oftheSASTRegulations,2011aswellasRegulation13(3)(4)(4A)read
with13(5)ofthePITRegulations.

b) Whether the Noticees are liable for monetary penalty under Section 15 A (b) of the
SEBIAct,1992?

c) What quantum of monetary penalty should be imposed on the Noticees taking into
considerationthefactorsmentionedinSection15JoftheSEBIAct,1992?

21.22. Beforemovingforward,itwillbeappropriatetorefertotherelevantprovisionsofthe,
theSASTRegulations,2011,andPITRegulations,1992whichreadasunder:

SEBI(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011
Disclosureofacquisitionanddisposal.
29(1).
(2)Anyacquirerwhoacquiressharesorvotingrightsinatargetcompanywhichtaken
togetherwithsharesorvotingrights,ifany,heldbyhimandbypersonsactingin
concertwithhiminsuchtargetcompany,aggregatingtofivepercentormoreof
thesharesofsuchtargetcompany,shalldisclosetheiraggregateshareholdingand
votingrightsinsuchtargetcompanyinsuchformasmaybespecified.
(3)ThedisclosuresrequiredundersubRegulations(1)andsubRegulations(2)shallbe
madewithintwoworkingdaysofthereceiptofintimationofallotmentofshares,or
theacquisitionofsharesorvotingrightsinthetargetcompanyto,
(a)Everystockexchangewherethesharesofthetargetcompanyarelisted;and
(b)Thetargetcompanyatitsregisteredoffice.

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 9 of 15

October 21 2015

SEBI(ProhibitionofInsiderTrading)Regulations,1992
Disclosure of interest or holding in listed companies by certain persons Initial
Disclosure
13(1)

Continualdisclosure

13(3)Anypersonwhoholdsmorethan5%sharesforvotingrightsinanylistedcompany
shalldisclosetothecompanyinFormCthenumberofsharesorvotingrightsheld
and change in shareholding or voting rights, even if such change results in
shareholdingfallingbelow5%,iftherehasbeenchangeinsuchholdingsfromthe
last disclosure made under subRegulations (1) or under this subRegulations; and
suchchangeexceeds2%oftotalshareholdingorvotingrightsinthecompany.
(4)Any person who is a director or Officer of a listed company, shall disclose to the
companyandthestockexchangewherethesecuritiesarelistedinFormD,thetotal
numberofsharesorvotingrightsheldandchangeinshareholdingorvotingrights,
iftherehasbeenachangeinsuchholdingsofsuchpersonandhisdependents(as
definedbythecompany)fromthelastdisclosuremadeundersubRegulations(2)or
under this sub Regulations, and the change exceeds Rs. 5 lakh in value or 25,000
sharesor1%oftotalshareholdingorvotingrights,whicheverislower.
(4A)Anypersonwhoisapromoterorpartofpromotergroupofalistedcompany,shall
disclose to the company and the stock exchange where the securities are listed in
FormD,thetotalnumberofsharesorvotingrightsheldandchangeinshareholding
orvotingrights,iftherehasbeenachangeinsuchholdingsofsuchpersonfromthe
last disclosure made under Listing Agreement or under subRegulations (2A) or
under this subRegulations, and the change exceeds Rs. 5 lakh in value or 25,000
sharesor1%oftotalshareholdingorvotingrights,whicheverislower.;
(5)ThedisclosurementionedinsubRegulations(3),(4)and(4A)shallbemadewithin
twoworkingdaysof:
(a)Thereceiptsofintimationofallotmentofshares,or
(b)Theacquisitionorsaleofsharesorvotingrights,asthecasemaybe.

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 10 of 15

October 21 2015

ISSUE 1: Whether the Noticees have violated provisions of provisions of

Regulation 29 (2) read with 29 (3) of the SAST Regulations, 2011 as well as
Regulation13(3)(4)(4A)readwith13(5)ofthePITRegulations.

23.

ThefirstissueforconsiderationiswhethertheNoticeeMr.BhushanKumarNarulawas
required to make disclosures under Regulation 13 (3) (4) (4A) read with 13 (5) of PIT
Regulations.Regulations for change in his shareholding from October 01, 2012 to
December31,2012.IItwasallegedintheSCNnotethat:
,
TtheNoticeeNo.1hadacquiredsharesoftheCompanyasdepictedbelow::
TableNo.1

22.

Date
10.10.2012
07.12.2012
05.10.2012
08.10.2012

ClientName
BhushanKumarNarula
BhushanKumarNarula
BhushanKumarNarula
BhushanKumarNarula

GrBusyVolume
102950
21551
30000
28050

ClientName
GrBusyVolume

Date
10.10.2012 BhushanKumarNarula 102950
07.12.2012 BhushanKumarNarula 21551
05.10.2012 BhushanKumarNarula 30000
08.10.2012 BhushanKumarNarula 28050
Similarly, Ms. Sidhi Narula, Noticee No. 2 hads acquired shares of the Company as
illustratedinthetablebelow:

TableNo.2

Date
05.10.2012
08.10.2012
23.11.2012
26.11.2012
27.11.2012

ClientName
SidhiNarula
SidhiNarula
SidhiNarula
SidhiNarula
SidhiNarula

GrBusyVolume
30000
25000
500
500
500

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
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October 21 2015

12.12.2012
18.12.2012
19.12.2012

SidhiNarula
SidhiNarula
SidhiNarula

100
11
1

Hence the total number of shares bought in the Financial Year 201213 by the
Noticees,Mr.BhushanKumarNarulaandMs.SidhiNarula,areasgivenbelow:

TableNo.3
ClientPAN
AAAHB4455L
AABPN9040L
AAEPN0229N

me
BhushanKumarNarula
BhushanKumarNarula
SidhiNarula

GrossBuyVolume
1,24,501
58,050
56,612

Thedetailsregardingthepre&postholdingsoftheNoticeesarelistedbelow

TableNo.4
Nameoftheentity

Preacquisition
Holding (September
2012Quarter)

%
Shares
BhushanKumarNarula 17.04
7,04,000
SidhiNarula
5.63
2,32,435

Acquisition

%
4.41
1.4

Postacquisition
Holding

Shares
%
Shares
1,82,551 21.25 8,86,551
56,612
7.03 2,90,504

TheNoticeeshavehadnotmadeanydisclosureswithrespecttotheaforementioned
acquisitions..Inviewofthesame,itwasallegedintheSCN,that

Tthrough the aforesaid actions, the Noticees had violated the provisions of
Regulation 13 (3) (4) (4A) read with 13 (5) of PIT Regulations and provisions of
Regulation29(2)readwith29(3)oftheSASTRegulations.

24.

VidereplydatedMarch19,2015andduringthehearing,theNoticeecontendedthat

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 12 of 15

October 21 2015

theThe transactions mentioned in the SCN are factually incorrect as on

10.10.2012&07.12.2012theshareswerebroughtinthenameofB.KNarulaHUF
andnotinthenameofBhushanKumarNarulaasindividual.

The Noticee also contended that, Wwith regard to purchase of shares by Mr.
Bhusan Kumar Narula as mentioned in the impugned para 5 of the SCN, i. It is
submittedthattheSCNistotallyvoidandincorrect,asnotransactionhasever
beenmadebyMr.BhushanKumarNarulainhispersonalcapacity.

Further,in table no. 04, Inin entry no. 1, above the PAN ID provided is of B.K
NarulaHUF, however the name mentioned isof Mr. Bhushan Kumar Narula. In
entry no. 2 the said shares were transacted by Ms. Ridhi Narula not by Mr.
BhushanKumarNarula,eventhePANIdprovidedisofMs.RidhiNarulaandnot
ofMr.BhushanKumarNarula.
Inotethat,sameisalsoevidentfromtheDemataccountstatementandshareh9olginpattern
availableontheBSEwebsite.

In Para 6 of the SCN, Mr. Bhushan Kumar Narula holding is 17.04% which is
allegedtohavebeenincreasedbyacquisitionof4.41%sharesto21.25%shares
which is incorrect. It is has been submitted by the noticees that, Mr. Bhushan
KumarNarulahasneitheracquirednorsoldhissharesinhisnamesince1996and
evenhisholdingisof17.04%whichhadneverchanged.

23.25. In view of the aforementioned submissions, the contentions of Noticees may be

acceptableduetothereasonthat,thesharesacquisitioninquestioninwasacquired
byB.KNarulaHUF.SinceMr.BhushanKumarNarulahadacquiredsharesinthename
onofB.K.NarulaHUFandnotinhisindividualcapacity,thereforeMr.B.K.Narulawas
not required to make any disclosures under PIT RegulationsFurther,upon scrutiny of
Demat account statements and material available on record, it is observed that the
shareholding of the Noticee no. 1 had not undergone any change during September
2012toDecember2012.

24.

Further, and Noticee no. 2, Ms. Sidhi Narula had acquired 56,612 shares during
September2012andDecember2012,thepreacquisitionshareholdingofNoticeeNo.
2 was 5.63was 5.63% and Post acquisition shareholding wasshareholding was 7%.

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
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October 21 2015

Hhence,tThepercentagechangeintheshareholdingwas1.37%,whichwaslessthan
2% and I note that, same is also evident from the demat account statement and
shareh9olginoldingpatternavailableontheBSEwebsite.
26.

.Hence website. Therefore, Noticee no. 2 was not required to make any disclosure
underSASTRegulations,2011andPITRegulations,1992.
(Source:http://www.bseindia.com/corporates/Sharehold_Searchnew.aspx?expandable=0#)

ISSUE2:WhethertheNoticeesareliableformonetarypenaltyunderSection15
A(b)oftheSEBIAct,1992?

TheprovisionsofSection15A(b)oftheSEBIAct,1992readasunder:

SEBIAct15APenaltyforfailuretofurnishinformation,return,etc.

If any person, who is required under this Act or any rules or Regulations made there
under

(a)

(b)tofileanyreturnorfurnishanyinformation,booksorotherdocumentswithinthe
time specified therefor in the Regulations, fails to file return or furnish the same
withinthetimespecifiedthereforintheRegulations,heshallbeliabletoapenalty
of one lakhrupees for each day during which such failurecontinuesor one crore
rupees,whicheverisless.

25.27. SincetheallegationsagainsttheNoticeeNo.1ofviolatingtheprovisionsofRegulations
13(3),(4),(4A)readwith13(5)ofPITRegulationsandviolationsagainstNoticeeNo.2
of violating provisions of Regulation 29 (2) read with 29 (3) of the SAST Regulations,
2011aswellasRegulation13(3)(4)(4A)readwith13(5)ofthePITRegulationshasnot
been established; therefore, the Noticee is not liable for monetary penalty under
Section15A(b)oftheSEBIAct,1992.

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
Page 14 of 15

October 21 2015

ISSUE3:WhatquantumofmonetarypenaltyshouldbeimposedontheNoticees
taking into consideration the factors mentioned in Section 15J of the SEBI Act,
1992?

26.28. Since,theNoticeesisnotliableformonetarypenaltyintheinstantmatter,thisissue
deservesnoconsideration.

ORDER

27.29. InexerciseofthepowersconferredunderSection15IoftheSecuritiesandExchange
Board of India Act, 1992, and Rule 5 of Securities and Exchange Board of India
(Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules,
1995,and,inviewofmyfindingsnotedintheprecedingparagraphs,Iherebydispose
offtheAdjudicationProceedingsinitiatedagainsttheNoticeesvideShowCauseNotice
datedFebruary21,2014.

28.30. In terms of the provisions of Rule 6 of the SEBI (Procedure for Holding Inquiry and
ImposingPenaltiesbyAdjudicatingOfficer)Rules1995,copiesofthisOrderarebeing
senttotheNoticeesandalsotoSecuritiesandExchangeBoardofIndia.

Date:October21,2015
Place:NewDelhi

MohammadAtifAlvi

AdjudicatingOfficer

Adjudication Order with respect to the promoters of M/sSilver Smith India Ltd.
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October 21 2015