6 entities settle disclosure lapse cases with Sebi by paying Rs 51.5 lakh

Six entities have settled with markets regulator Sebi cases of alleged disclosure lapses while dealing in shares of Seshasayee Paper and Boards Ltd's (SPBL), by paying a total of Rs 51.5 lakh towards settlement charges.

The entities are Time Squire Investment Pvt Ltd, Dhanashree Investments Pvt Ltd, SPB Projects and Consultancy Ltd, N Ramanathan, Arun G Bijur, and N R Suresh.

A probe by Sebi prima facie revealed that during the quarter ended June 2013, pursuant to a scheme of amalgamation whereby SPB Papers Ltd was merged with SPBL, the shareholding of existing promoters such as Time Squire Investment and Dhanashree Investments had increased in the firm.

The promoters were required to make requisite disclosures to the company and the stock exchanges regarding this but they allegedly failed to do so.

Besides, SPB Projects and Consultancy, N Ramanathan and Arun G Bijur became promoters of the firm pursuant to the amalgamation and N R Suresh transferred his entire shareholding in SPBL.

The entities allegedly failed to make requisite disclosures with respect to such transactions.

The six entities were alleged to have violated the Prohibition of Insider Trading norms.

Pending adjudication proceedings, the entities filed separate settlement applications with Sebi proposing to settle the cases without admitting or denying the guilt.

Thereafter, high-powered advisory committee of Sebi recommended the cases for settlement upon payment of Rs 17,55,781 by Time Squire Investment, Rs 9,29,688 by Dhanashree Investments, Rs 6,64,063 each by SPB Projects and Consultancy, N Ramanathan and Arun G Bijur and Rs 4,81,781 by N R Suresh.

The respective amounts, after approval of panel of whole-time members of Sebi, were remitted by the entities.

"Now, therefore, in view of the acceptance of the settlement terms and receipt of penalty amount as above by Sebi, the instant adjudication proceedings initiated against the applicant...are disposed of," Sebi said in similarly worded separate orders.