check list section 194

ANSAL PROPERTIES AND INFRASTRUCTURE LIMITED

Section 194 of Companies Act, 2013

Prohibition on forward dealings in securities of Company by Director or Key Managerial Personnel (New Section)

Section

Provisions of Sections Checklist

194(1) No director of a company or any of its key managerial personnel shall buy in the company, or in its holding, subsidiary or associate company—

YES NOThere will be a contravention of the provisions of Section 194 of the Companies Act, 2013, if ATLEAST ONE of any of the Sub Points within Section -“A” AND ATLEAST ONE of any of the Sub-points within Section-“B” AND ATLEAST ONE of any of the Sub-points within Section-“C” is “YES”

Section- “A”Whether any of the rights as specified in Section-“C” has been bought by:-

Managing Director/ CEO/Manager of the Company Or

Its Company Secretary

Or

Its Whole Time Director (WTD) Or

Its CFO

Or

Any other officer prescribed as KMP (Key Managerial Personnel)(Although in Sub-section 1 the word “Director” is used, we shall construe it to mean “Whole Time Director” pursuant to the explanation of the


(a) a right to call for delivery or a right to make delivery at a specified price and within a specified time, of a specified number of relevant shares or a specified amount of relevant debentures; or

Section) YES NO

Section –“B”Whether the relevant shares or debentures, in relation to which the right as mentioned in Section “C” are bought in:

Company

OR

its Holding Company

OR

its Subsidiary Company

OR

its Associate Company

Section- “C”Whether :1) the right to call for

delivery of specified no. of relevant shares bought at :-

a) at a specified price; and

b) within a specified time

2) the right to make delivery of specified number of relevant shares bought at :-




(b) a right, as he may elect, to call for delivery, or to make delivery at a specified price and within a specified time, of a specified number of relevant shares or a specified amount of relevant debentures.

Explanation:- “Relevant Shares” and “Relevant Debentures” means shares and debentures of the Company in which the concerned person is a Whole-Time Director or other Key Managerial Personnel or Shares and Debentures of its holding and Subsidiary Companies.

YES NO

3) the right to call for delivery of specified amount of relevant Debentures bought at :-



4)whether the right to make delivery of specified amount of relevant Debentures has been bought at :-



5) the right may be exercised to call for delivery of specified number of relevant shares bought at :-



6) the right may be exercised to make delivery of specified number of relevant shares bought at :-



YES


194(2)

194(3)

If a director or any key managerial personnel of the company contravenes the provisions of sub-section (1), such director or key managerial personnel of the company shall be punishable with imprisonment for a term which may extend to two years or with fine which shall not be less than one lakh rupees but which may extend to five lakh rupees, or with both.

NO

7) the right may be exercised to call for delivery of specified amount of relevant debentures bought at :- a) at a specified

price; andb) within a specified

time 8)whether the right

may be exercised to make delivery of specified amount of relevant debentures bought at :



If there is any contravention by the Whole Time Director(WTD)/KMP, Such WTD/KMP will be punishable with:-

(i) Imprisonment for a term of upto 2 years

OR

(ii) Fine between Rs. 100,000 and 500,000

OR

(iii) With (i) and (ii) both

In case the WTD/KMP acquires any


Where a director or other key managerial personnel acquires any securities in contravention of sub-section (1), he shall, subject to the provisions contained in sub-section (2), be liable to surrender the same to the company and the company shall not register the securities so acquired in his name in the register, and if they are in dematerialized form, it shall inform the depository not to record such acquisition and such securities, in both the cases, shall continue to remain in the names of the transferors.

Securities in contravention of Sub-Section (1), the said WTD/KMP shall surrender the said securities to the Company, and the Company shall not register the transfer of the said Securities and further inform the Depository not to record the transfer of the Securities, in case the securities are held in the Demat Form.

The effect will be such as if the securities were never purchased by the WTD/KMP and the securities shall remain in the names of Transferor(s).

Date : 26th February, 2014

check list section 194

Documents