22 entities settle case with Sebi on payment of Rs 21.25 lakh

As many as 22 entities including individuals today settled a case related to alleged non- compliance of takeover norms with market regulator Sebi after payment of Rs 21.25 lakh as settlement fee.
Gembel Trade Enterprises, acting in concert with 21 entities, had acquired 4.54 per cent stake in IG Petrochemicals in August 2009 through open market transaction, increasing the promoter group shareholding from 57.84 per cent to 62.38 per cent and had failed to make an open offer under SAST (Substantial Acquisition of Shares and Takeovers) regulations.
The Securities and Exchange Board of India had initiated adjudication proceedings against these entities over the violation of the regulations.

Pursuant to a settlement under Sebi's consent mechanism, the market regulator in a ruling today said it is disposing of "the...Adjudication proceedings pending in respect of the applicant (four entities)".
While proceedings against these entities were in progress, they had offered to settle the matter on payment of Rs 21.25 lakh as charges under Sebi's consent order mechanism.
Thereafter, Sebi's High Powered Advisory Committee on Consent recommended the case for settlement on the payment of the amount.

This was also approved by Sebi's panel of wholetime members, following which these entities remitted the amount.
Sebi said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by these companies is found to be untrue.

Under the consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.