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Sebi slaps Rs 25 lakh fine on 10 entities for non-disclosure

Press Trust of India  |  New Delhi 

Markets regulator today imposed a penalty totalling Rs 25 lakh on 10 entities for failing to make public announcement about of through open market transactions.

Asit C Mehta, promoter of Asit C Mehta Financial Services Ltd (ACMFSL), along with the persons acting in concerts (PACs) had acquired 50,000 of the company on March 10, 2010 and 49,863 on March 22, 2010, amounting to 1.01 per cent (on both the occasions) of the total stake, through bulk deals.

Following the acquisition, these entities were required to make public announcement under Sebi's SAST (Substantial of Shares and Takeovers) Regulations.

"The noticees (10 entities) by not making public announcements on both the occasions, have failed to comply with the provisions of SAST regulations and also deprived the shareholders of the exit opportunity at the relevant time and the same attracts monetary penalty," General Manager and Adjudicating Officer D Sura Reddy said.

Accordingly, has slapped a total fine of Rs 25 lakh on Asit C Mehta (acquirer) and PACs with the acquirer -- Deena A Mehta, Asit C Mehta Forex, Asit C Mehta Commodity Services, Aditya Asit Mehta, Gopa Jayesh Desai, Rupa Atul Shah, Shobhnaben Thakorbhai Desai, Asit Chimanlal Mehta HUF and Jayesh T Desai HUF.

Bulk deal comprises all transactions in a scrip (on the exchange) where total quantity of shares bought or sold is more than 0.5 per cent of the number of the company's shares listed on the bourse.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, May 17 2017. 17:57 IST