STOCK MARKET BSE NSE

SEBI slaps Rs 62 lakh fine on seven entities for violating takeover norms

The entities have violated Substantial Acquisition of Shares and Takeovers (SAST) norms, SEBI noted in separate orders issued on Thursday.

Published: 24th October 2019 05:23 PM  |   Last Updated: 24th October 2019 05:23 PM   |  A+A-

SEBI

For representational purposes.

By PTI

NEW DELHI: Markets regulator Sebi on Thursday levied a total penalty of Rs 62 lakh on seven entities for failing to make a public announcement with regard to the acquisition of Parichay Investments Ltd shares.

The entities have violated Substantial Acquisition of Shares and Takeovers (SAST) norms, Sebi noted in separate orders issued on Thursday.

During an investigation conducted by the regulator, it noted that the holdings of the entities in Parichay Investments crossed the threshold limit of 15 per cent on several occasions and they were required to make a public announcement to acquire shares in the firm.

However, the entities failed to do so, Sebi noted in its orders.

Under the SAST norms, an entity has to make a public announcement to acquire shares of a company in case its shareholding in the firm goes beyond 15 per cent.

In similarly worded orders, Sebi said "the noticee deprived the public shareholders of their valuable right and the default on the part of the noticee are repetitive in nature, I am of the view that this is a fit case to impose such penalty that commensurates with the gravity of the violations committed by the noticee.

" Accordingly, Sebi levied a fine of Rs 20 lakh on Amul Gagabhai Desai, Rs 14 lakh on Krunal Gopaldas Rana and Rs 10 lakh jointly or severally payable by Dhirenkumar Dharamdas Agarwal and Shweta Dhiren Agarwal.

Besides, Sanjay Jethalal Soni, Krupa Sanjay Soni and JM Soni Consultancy are facing a penalty of Rs 18 lakh payable jointly or severally by them.

In a separate order, the regulator slapped a penalty of Rs 16 lakh on JM Soni Consultancy and the Soni couple for failing to make a public announcement to acquire shares of Oregon Commercial after their shareholding changed in the firm.

They violated the provisions of SAST norms, Sebi said. The fine of Rs 16 lakh is to be paid jointly or severally by the entities, it added.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp