Regulator Sebi today imposed a penalty of Rs 50 lakh on four individuals for violating securities markets norms.
These persons are Tarunkumar Brahambhatt, Jinesh Bhatt, Krishankumar Brahambhatt and Prarthana Brahambhatt.
A probe conducted by Sebi found that these four persons had acquired 16.77 per cent shares/voting rights of the Velan Hotels but did not make public announcement about the acquisition.
By indulging in such activities, they violated the provisions of SAST (Substantial Acquisition of Shares and Takeovers) norms.
Besides, Tarunkumar had executed fictitious/self trades and created artificial price rise in the share of Rajratan Global and thereby violated the provisions of PFTUP (Prohibition of Fraudulent and Unfair Trade Practices) regulation.
Further, Sebi noted that Jinesh Bhatt had picked up 5.34 per cent stake in Velan Hotels on November 26, 2009. He was required to make disclosure to Velan Hotels and to the stock exchange under PIT (Prohibition of Insider Trading) and SAST norms about the share purchase within two days. However, he allegedly failed to make such disclosures.
Further, Bhatt's shareholding had come down from 5.34 per cent to 0.17 per cent during the period December 2009 to March 2010. Under the PIT rules, he was required to make disclosures to Velan Hotels, which he had allegedly failed to disclose the same.
Besides, Sebi said Tarunkumar Brahambhat, (0.28 per cent stake) who was having combined holding with Bhatt (5.34 per cent) as person acting in concert, which was more than five per cent shareholding in the scrip (Velan Hotels). Consequently, Tarunkumar was also required to make disclosure under SAST regulations.
"I am of the opinion that noticee number 1 (Tarunkumar Brahambhat) had failed to make the disclosures to the company and to the stock exchange upon acquisition of more than 5 per cent of shareholding in Velan Hotel and accordingly had violated...SAST Regulations," Sebi Adjudicating Officer Rachna Anand said in an order.
In a separate order, the Securities and Exchange Board of India (Sebi) has levied a fine of Rs 10 lakh on Mahanivesh Stock and Shares for violating provisions of SAST and PIT regulations.
Mahanivesh Stock and Shares had purchased 5.79 per cent stake in MuditFinlease Ltd during May 2-4, 2012 but failed to make disclosure disclosure within a period of two days under the norms.
Further, its shareholding became nil on May 14, 2012 but did not inform about it to MuditFinlease and the stock exchanges under Sebi's rules.