SEBI orders penalty of ₹11 lakh and ₹10 lakh for share acquisition violations

This is a final order by SEBI regarding the acquisition of shares in Sungold Capital Limited by five individuals (the Kotia family) in 2007, which SEBI found violated open offer thresholds under the SAST Regulations 1997. The order addresses the specific directions to be issued after the Supreme Court and SAT remanded the case for reconsideration of the open offer requirement.

Mr. Rajiv R. Kotia, Mrs. Shilpa Amit Kotia, Mrs. Shweta Dhaval Kotia, Mr. Dhaval Ramesh Kotia, Mr. Ravi Rajiv Kotia, and Sungold Capital Limited.

• SEBI found the Noticees violated Regulation 10 and 11(1) of the SAST Regulations 1997 for acquiring shares in 2007 without making a public open offer.
• A previous penalty of INR 11 lakh on Noticee 1 and INR 10 lakh jointly on Noticees 2-5 was upheld by the SAT.
• The SAT set aside the previous direction to make a public open offer and remanded the matter to SEBI to pass fresh directions after hearing both parties.
• SEBI granted a personal hearing on July 23, 2025, to determine the appropriate final direction.
• The Noticees argued that an open offer is impractical due to an 18-year delay and suggested alternative penalties or disposal of excess shares to the Investor Protection Fund.

Written from the document by AI, and checked against it. The original below is authoritative.

The original document