Markets regulator Sebi today imposed a total penalty of Rs 12 lakh on Kwality Ltd and its five promoters for allegedly violating disclosure norms.
The promoters are Sanjay Dhingra, Gulshan Dhingra, Naresh Dhingra, Krishan Dhingra and Kanika Dhingra, according to a Sebi order.
A probe conducted by the Securities and Exchange Board of India (Sebi) into share trading of Kwality Ltd between December 2009 and December 2011 found that there was a change in the number of promoters and their shareholdings for the quarter ended September, 2011, the order said.
During the quarter, Kanika Dhingra was included in the promoter category and acquired 5.24 crore shares or 25.84 per cent of the total capital from other promoter and was required to disclose acquisition of shares to the company and to the stock exchanges under SAST (Substantial Acquisition of Shares and Takeovers) norms.
The other four promoters were also required to make various disclosures including a change exceeding 2 per cent of total share capital of the firm to BSE and NSE under PIT (Prohibition of Insider Trading) regulations.
"However, no disclosure regarding the change in shareholding was ever made to the stock exchanges," Sebi said in the order.
Further, the regulator noted that Kwality Ltd also violated SAST norms by failing to make disclosures regarding acquisition of shares.
Accordingly, Sebi has slapped a penalty of Rs 2 lakh each on the six entities.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)