Sebi closes NWTL promoter disclosure case

Netvision Web Technologies has paid a sum of Rs 2 lakh towards the settlement charges

Sebi today closed the case against Netvision Web Technologies after the company made Rs 2 lakh payment to settle charges related to non-disclosure of change in shareholding pattern.

According to the market regulator, there was a change in the shareholding pattern of the promoters of Netvision Web Technolgies Ltd (NWTL) between quarter ended December 2004 to June 2005. Such disclosures, which are mandatory when promoter holding changes, were not disclosed by these entities, alleged Sebi.

"This consent order disposes of the said proceedings pending against NWTL under Sebi Act...," Sebi said in an order dated October 12.

NWTL has paid a sum of Rs 2 lakh towards the settlement charges, it added.

As per the regulator, the promoters of NWTL had reduced their holdings by 11.29% in the quarter ended December 2004 to June 2005.

During that time, NWTL's promoter CMD Bharat Jivanlal Patel had reduced his holdings by 10%. Another promoter Kalpesh R Sheth had acquired 7.48% stake in the company at the end of quarter June, 2005.

When the adjudication proceedings were in progress, NWTL had proposed a settlement in June 8, 2011 under Sebi's consent order mechanism.

Later, a revised settlement offer of Rs 2 lakh was put up by the company through a letter dated October 15, 2011.

Sebi's High Powered Advisory Committee (HPAC) recommended that the proceedings against NWTL may be settled on payment of that amount, the order said.

The market regulator also said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by NWTL is found to be untrue.