Disclosure lapses: Sebi imposes Rs 7 lakh fine on entities

Markets regulator Sebi today imposed a total penalty of Rs 7 lakh on two entities for violating disclosure norms while dealing in the shares of Le Waterina Resort and Hotels.

Through separate orders, the Securities and Exchange Board of India (Sebi) slapped fines of Rs 5 lakh and Rs 2 lakh on Maitru Agro Marketing Pvt Ltd and Sangam Agro Agencies Pvt Ltd, respectively.

The regulator had conducted an investigation in the shares of Le Waterina Resort and Hotels Ltd during the period from October 1, 2010 to March 5, 2012.

Maitru had bought and sold shares of Le Waterina Resort and Hotels on December 16, 2010 and February 4, September 21 and October 24 in 2011, while Sangam had picked up and disposed of the scrips on September 16, 2011 and February 27, 2012.

In the order regarding Maitru, the regulator noted that the entity did not comply with disclosure norms under the SAST (Substantial Acquisition of Shares and Takeovers) Regulation and PIT (Prohibition of Insider Trading) Regulation for its transactions in the shares of Le Waterina Resort and Hotels on four occasions during the investigation period.

Sangam made delayed disclosures and violated SAST and PIT Regulations, the regulator noted in a separate order.

As per the orders, there is material on record to state that the violations of Maitru and Sangam are "repetitive in nature" as there have been four and two instances of violation, respectively.

Sebi had also observed that one Manmohan Damani had also not complied with disclosure norms while dealing in the shares of Le Waterina Resort and Hotels during the investigation period.

However, the regulator disposed of the case against Damani after his demise.