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

Under Section 15H of the SEBI Act, 1992, a person becomes liable to penalty when he:

A person is liable under Section 15H when, being required by the Act, rules or regulations, he fails to make a public offer by sending a letter of offer to shareholders. Registration and manipulation breaches fall under other sections.

  1. Afails to obtain a certificate of registration as a stock-broker
  2. Bfails, when required by the Act or its regulations, to make a public offer by sending a letter of offer to the shareholdersCorrect
  3. Cuses a manipulative device in the purchase of listed securities
  4. Dis merely a shareholder in a company that is taken over

Explanation

Section 15H clause (iii) covers failure to make a public offer by sending a letter of offer where required. Registration defaults fall under Section 12 and manipulative devices under Section 12A.

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