JUDGMENT

RANJAN GOGOI, J.

1. The challenge in this appeal is to an order of the learned Securities Appellate Tribunal, Mumbai (hereinafter referred to as “the Tribunal”) reversing the order of the Adjudicating Officer dated 25th August, 2006 holding the respondents guilty of contravening the provisions of Regulation 22(7) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (hereinafter referred to as “the Regulations”). A penalty of Rs.25 lakhs has been imposed on each on the respondents herein for the aforesaid violation. Aggrieved by the aforesaid reversal, Securities & Exchange Board of India (hereinafter referred to as “SEBI”) is in appeal before us.

2. The relevant facts are not in dispute. The first respondent herein – Burren Energy India Ltd. (hereinafter referred to as “Burren”) was incorporated in December, 2004 under the laws of England and Wales with its registered office in London. Burren was formed to acquire the entire of the equity share capital of one Unocal Bharat Limited (hereinafter referred to as “UBL”), incorporated in Mauritius in July, 1996. The shares of the aforesaid UBL were acquired in September,