Sebi imposes Rs 5 Lakh penalty on five entities over disclosure lapses

Markets Regulator Sebi on Tuesday imposed a penalty of Rs 5 lakh on five entities for making a delayed public announcement for the acquisition of Servotech Engineering Industries' share.

The five entities are Radheyshyam Lahoti, Ramawtar Lahoti, Lahoti Exports, Quality Products Marketing and Focus Investments and Traders.

According to Sebi, the entities had crossed 25 per cent voting rights in Servotech Engineering Industries following the market purchase of 13,34,200 equity shares on September 22, 2012 and were required to make a public announcement on September 26, 2012.

The regulator said the public announcement for the acquisition was made by the entities only on April 29, 2015 and that too only after a direction by it through an order dated January 23, 2015.

"The noticees (five entities), by making the public announcement for acquisition of shares with a delay, have violated the provisions... of the SAST (Substantial Acquisition of Shares and Takeovers) Regulations thereby warranting monetary penalty," Sebi said in an order.

In a separate order, the Securities and Exchange Board of India (Sebi) has slapped a total penalty of Rs 5 lakh on two individuals for disclosure lapses with respect to acquisition of shares of Mahavir Industries.

The regulator has also levied a fine of Rs 2 lakh on Dadima Capital for violating disclosure norms in the matter of KCCL PLastic.