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CS Executive · Capital Market and Securities Laws · Acquisition of Shares and Takeovers - Concepts

Meera Textiles Ltd's promoter buys shares of a listed company and, while required to by SEBI regulations, does not make the public announcement to acquire shares at a minimum price. Which provision of the SEBI Act, 1992 provides the penalty for this failure?

Section 15H of the SEBI Act, 1992 applies. It penalises a person who is required to make a public announcement to acquire shares at a minimum price but fails to do so. Sections 12, 12A and 15J deal with registration, prohibited practices and penalty factors respectively.

  1. ASection 12
  2. BSection 15HCorrect
  3. CSection 15J
  4. DSection 12A

Explanation

Section 15H penalises failure to make a public announcement to acquire shares at a minimum price, among other takeover-related defaults. Section 12 deals with registration of intermediaries, Section 12A with prohibition of manipulative devices and insider trading, and Section 15J with factors for quantum of penalty.

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