New Delhi: Markets regulator Sebi has slapped a penalty of Rs 8 crore on eight entities for failing to make timely disclosures to stock exchanges with regard to change in shareholding.For latest news on Business & Budget 2017, like us on Facebook and follow us on Twitter.
The fine has been slapped on Presha Metallurgical, Pankhuri Technowave, Compass Technologies, Parixit Gas Company, Ashok Propon, Darshit Hydro Power Projects, Sankeshwar Metals and Hiralal P Shah HUF (Noticees) for violation of disclosure norms under listing agreement.
A probe by Securities and Exchange Board of India (Sebi) found that the entities failed to make relevant disclosures regarding change in shareholding pattern.
The total share capital of PML was increased by one crore scrips on account of conversion of equity warrants issued to these entities on preferential basis on May 2012.
The shareholding of these entities changed following the conversion of equity warrants.
Further, the entities tried to mislead the stock exchange BSE by submitting purported document and claiming that the disclosures were made during the mandated timeframe.
By making delayed disclosures, the entities have violated the provisions of Prohibition of Insider Trading (PIT) and Substantial Acquisition of Shares and Takeovers (SAST).
A maximum fine of Rs 1 crore has been imposed on each entity under the violations as the delay in making disclosure was around two and a half years.
According to the regulator, the disclosures were made in December 2014.
"A total penalty of Rs 8 crore is imposed upon the noticees and the said penalty will commensurate with the violations committed by the noticee," Sebi's Adjudicating Officer Rachna Anand said.
"Correct and timely disclosure are an essential part of the proper functioning of the securities market and failure to do so results in preventing the investors from taking well informed decision" the regulator said.