Sebi slaps Rs 1.5 lakh fine on Metex Marketing

Sebi charged that during the probe period company had transferred 14.04 lakh shares and did not make any disclosure

Market regulator Sebi has slapped a fine of Rs 1.5 lakh on Metex Marketing for not making disclosures regarding its sale of Koffee Break Pictures shares within the requisite time-frame.

"A penalty of Rs 1.5 lakh on the noticee (Metex Marketing Pvt Ltd) would be commensurate with the non-disclosures by the noticee", after considering the facts and circumstances of the case, said a Sebi order, dated September 30.

The Securities and Exchange Board of India conducted an investigation in the scrip of Koffee Break Pictures Ltd during October-November 2011.

In its show-cause notice, Sebi charged that during the probe period Metex Marketing had transferred 14.04 lakh shares to three promoter entities and did not make any disclosure to the company and to the stock exchange regarding it.

However, Metex Marketing said that "it had intimated the company and BSE about the sale of 3.5 lakh shares, 1 lakh shares, 3 lakh shares and 3.54 lakh shares vide email dated October 6, 2011, October 22, 2011, November 5, 2011 and November 26, 2011 respectively".

Further, it had also accepted that the disclosures with respect to sale of three lakh shares are yet to be made and the same may treated as technical in nature.

"In view of the facts and material made available on record, it can be concluded that the noticee has failed to comply with the provisions of  the Prohibition of Insider Trading Regulations with respect to the sale of 3 lakh shares only," Sebi noted.

 According to Sebi's regulation, the noticee was required to make the disclosures regarding the change in its shareholding to the company and to concerned stock exchanges within two working days of the sale of shares.