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

Which of the following failures attracts the penalty under Section 15H of the SEBI Act relating to acquisition of shares and takeovers?

Failing to disclose the aggregate shareholding in the body corporate before acquiring its shares, where required, attracts the Section 15H penalty. Filing accounts, office leases and AGMs are outside that section, which targets takeover-related disclosure, announcement, offer and payment failures.

  1. AFailure to file annual accounts with the Registrar
  2. BFailure to disclose the aggregate shareholding in the body corporate before acquiring any of its shares, where requiredCorrect
  3. CFailure of a stock-broker to renew a office lease
  4. DFailure to hold an annual general meeting

Explanation

Section 15H lists failures to disclose aggregate shareholding before acquiring shares, to make a public announcement at a minimum price, to send a letter of offer to shareholders, and to pay consideration to those who sold under the offer. Accounts filing, office leases and AGMs are not among them.

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