SEBI orders open offer after Shubhlaxmi promoter's 5% share increase

This order addresses the failure of the promoter group of Shubhlaxmi Jewel Art Limited to make a mandatory open offer after their shareholding increased by more than 5% in a financial year, violating SEBI takeover regulations.

Shubhlaxmi Jewel Art Limited (Target Company); Narendrasinh J Chauhan; Soham Narendrasinh Chauhan; Ranjitsinh Gambhirsinh Solanki; Jagrutiben N Chauhan; Jignasha Ranjitsinh Solanki; Vilasben Ashokkumar Parmar; Kajal Jitendrakumar Chauhan; Jitendrakumar J Chauhan.

• SEBI found that the Noticees violated Regulation 3(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
• The violation occurred because the promoter group's shareholding increased by 5.82% (exceeding the 5% threshold) following the conversion of 18,00,000 warrants into equity shares on May 08, 2023, without making an open offer.
• SEBI determined that the Noticees are liable for a monetary penalty under Section 15H of the SEBI Act.
• The statutory penalty range for this violation is not less than INR 10 lakh and may extend to INR 25 crore or three times the profits made, whichever is higher.
• The document text is truncated before the final specific penalty amount is stated.

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