An erroneous 'cut and paste' job in updating its shareholding pattern has cost a Tata group firm, The Tinplate Company of India Ltd, an amount of Rs 2.28 lakh as payment towards settlement of a case with the Securities and Exchange Board of India (Sebi).
Sebi, in a consent order dated June 28, has settled charges of takeover norms violation by TCIL after it paid Rs 2.28 lakh.
Besides, the market regulator said it will not initiate any enforcement action against the company. A consent order enables settling administrative or civil proceedings between the regulator and the party concerned.
The company had been charged with delay in filing the shareholding details under Sebi's takeover regulations for 2009 and 2010.
Besides, there was inaccurate disclosure regarding change in shareholding of the company between March 31, 2010 and March 31, 2011.
However, "change in shareholding had never taken place but that the change in the shareholding which had actually taken place between March 31, 2010 and March 31, 2011 and had already been indicated in the relevant disclosures for that particular year had been repeated for the next year due to a 'cut and paste' error."
Consequently, the disclosures for the period between March 31, 2010 and March 31, 2011 indicated a change in shareholding pattern even though there was no such change. Also, there was no change in control of the company during the period.
TCIL submitted an application with Sebi in December 2012 following which their representatives held a meeting with the regulator's internal committee on consent.
After that, the consent terms were placed before the high powered advisory committee of Sebi. The committee recommended the case for settlement upon payment of Rs 2.28 lakh towards settlement charges.
The applicant (TCIL) has remitted the sum towards settlement fees.
In a separate consent order, Sebi has settled charges of takeover norms violation by Ashok Alco-Chem Ltd after it paid Rs 3.52 lakh.
The company had not filed the disclosures regarding its shareholding details between 2001 and 2007 and 2009 within specific time-frame.