BEFORETHEADJUDICATINGOFFICER

SECURITIESANDEXCHANGEBOARDOFINDIA
[ADJUDICATIONORDERNO.AK/AO201/2014]
______________________________________________________________________________
UNDERSECTION15IOFSECURITIESANDEXCHANGEBOARDOFINDIAACT,1992READWITH
RULE 5 OF SEBI (PROCEDURE FOR HOLDING INQUIRY AND IMPOSING PENALTIES BY
ADJUDICATINGOFFICER)RULES,1995.
Inrespectof
M/sCOUNTNDENIER(INDIA)LTD.(PANAAACP2883M)

Inthematterof
M/sCOUNTNDENIER(INDIA)LTD
________________________________________________________________________

FACTSOFTHECASE

1.

AletterofofferwasmadebyMr.GautamMohanDeshpande,(hereinafterreferredto
as'theAcquirer')toacquire7,80,000fullypaidupequitysharesofRs10/eachatan
offerpriceofRs.1.50/perequityshare(representing26%ofthetotalpaidupequity
sharecapitalandvotingrights)ofM/s.CountNDenier(India)Ltd.(hereinafterreferred
toas'thecompany'/'theNoticee').Thepublicannouncementofthesamewasmade
on December 18, 2012 and the shares of the company are listed at Bombay Stock
ExchangeLimited(hereinafterreferredtoasBSE)andtheAhmedabadStockExchange
Limited(hereinafterreferredtoasASE).

2.

While examining the letter of offer filed by the Acquirer to acquire 26% shares of the
Target Company, Securities and Exchange Board of India (hereinafter referred to as
SEBI)observedcertainnoncomplianceswithregardtoSEBI(SubstantialAcquisitionof
Shares and Takeovers) Regulations, 1997 (hereinafter referred to as 'Takeover
Regulations,1997')bytheCompany,detailsofwhichareasfollows:

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Regulations/Sub
regulation
(TakeoverRegulations,
1997)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)

Duedatefor
compliance

Actualdateof
compliance

Delayin
compliance
(inno.ofdays)

30/04/2002
30/04/2003
30/04/2004
30/04/2005
30/04/2006
30/04/2007
30/04/2008
30/04/2009
30/04/2010
30/04/2011

30/08/2011
10/08/2011
10/08/2011
10/08/2011
10/08/2011
10/08/2011
10/08/2011
10/08/2011
10/08/2011
10/08/2011

3,409
2,963
2,597
2,232
1,867
1,502
1,136
771
406
41

APPOINTMENTOFADJUDICATINGOFFICER

3.

TheundersignedwasappointedasAdjudicatingOfficervideorderdatedNovember26,
2013 under Section 15 I of SEBI Act read with Regulations 44 and 45 of Takeover
Regulationsandrule3ofSEBI(ProcedureforHoldingInquiryandImposingPenaltiesby
AdjudicatingOfficer)Rules,1995(hereinafterreferredtoasRules)toinquireintoand
adjudge under Section 15A (b) of the SEBI Act, the alleged violations of Takeover
Regulations.

SHOWCAUSENOTICE,HEARINGANDREPLY

4.

AShowCauseNoticeNo.EAD6/AK/VG/2849/2014datedJanuary24,2014(hereinafter
referredtoas'SCN')wasissuedtotheNoticeeunderrule4oftheRulestoshowcause
as to why an inquiry should not be held and penalty be not imposed under Section
15A(b) of SEBI Act for the alleged violation specified in the said SCN. The SCN was
delivered and acknowledged by the Noticee. Since no reply was received, a reminder
wassenttothecompanyvideemaildatedApril03,2014.Thereafter,theNoticeevide
emaildatedApril07,2014,interaliasubmittedtheyhadfiledaconsentapplicationfor
thechargesleveledintheSCNagainstthecompany,whichwerealreadycoveredbya

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previousSCNdatedDecember03,2013.InotethataconsentOrderhasbeenpassedin
theabovestatedmatteronSeptember12,2014.

5.

OnperusaloftheconsentorderdatedSeptember12,2014,itisobservedthatthesaid
consent order is for settlement of nondisclosure by the Noticees of Regulation 6(2),
6(4)&8(3)oftheTakeoverRegulations,1997,detailsofwhichareasgivenbelow:

Sl.no. Regulation/Sub
Regulation
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16

6(2)
6(4)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)
8(3)

Duedateof
compliance

Actualdateof
compliance

20.05.1997
20.05.1997
30.04.1998
30.04.1999
30.04.2000
30.04.2001
30.04.2002
30.04.2003
30.04.2004
30.04.2005
30.04.2006
30.04.2007
30.04.2008
30.04.2009
30.04.2010
30.04.2011

27.06.2011
27.06.2011
30.08.2011
30.08.2011
30.08.2011
30.08.2011
30.08.2011
10.06.2011
10.06.2011
10.06.2011
10.06.2011
10.06.2011
10.06.2011
10.06.2011
10.06.2011
10.06.2011

Durationofnon
compliance(No.of
Days)
5,151
5,151
4,870
4,505
4,139
3,774
3,409
2,963
2,597
2,232
1,867
1,502
1,136
771
406
41

ORDER

6.

Aftertakingintoconsiderationallthefactsandcircumstancesofthecaseandreplyof
theNoticee,Ifindthatthemattercannotbeproceededwithastheallegedtransactions
were already dealt with through the Consent Mechanism of SEBI and Consent Order
datedSeptember12,2014hasalreadybeenpassedagainsttheNoticee.Thesettlement
charges arrived at Rs. 7,09,750/ (Rupees Seven Lakh, Nine Thousand, Seven Hundred
andFiftyonly),waspaidbytheNoticeevidedemanddraftNo.008656datedAugust26,

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2014drawnonINGVysyaBankLtd.towardsthetermsofconsentinthematter.Thus,
thematterisdisposedofasinfructuous.

7.

Intermsofrule6oftheRules,copiesofthisorderaresenttotheNoticeeandalsoto
theSecuritiesandExchangeBoardofIndia.

Date:September24,2014
Place:Mumbai

AnitaKenkare
AdjudicatingOfficer

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