Disclosure under PIT Regulation is duly complied on its receipt by the Stock Exchange. However, the mere fact that the letter was wrongly addressed does not mean that no disclosure was made.
The Securities Appellate Tribunal in the matter of Man Industries (India) Ltd. vs. Securities & Exchange Board of India and Ors. observed that the Appellant had submitted the disclosure to Bombay Stock Exchange (‘BSE’) and has its acknowledgment. However, the said letter was addressed to The Manager, NASDAQ and was not addressed to BSE. The Bench Member opined that the error is obvious and an inadvertent error. The letter which was sent to NASDAQ has been received by BSE and this is not fatal for the disclosure that is required to be made under Regulation 13(6) of the PIT Regulations. What is essential for compliance of Regulation 13(6) is that the disclosure of the acquisition of the shares which has actually been received by BSE through the aforesaid letter. The purpose of the said regulation was that the disclosure was required to be made and such disclosure stood complied with when it was received by the concerned authority. Once information is received by the respondent, the requirement of Regulation 13(6) stands complied.