Disclosure lapses: Sebi slaps Rs 9 lakh fine on 3 individuals

Markets regulator Sebi has imposed a total penalty of Rs 9 lakh on three individuals, including current and former promoters of Sunil Agro Foods, for disclosure lapses.
The individuals are Pramod Kumar S, Sunil Jain and Shantilal Bansilal.
According to a Sebi order dated February 21, Jain had transferred 2,59,334 shares of Sunil Agro Foods to Kumar S through off market route, in an inter-se promoter transfer on June 9, 2014.
Being promoters, they had to make disclosures about the change in their shareholding to the company as well as the stock exchange within two working days from June 9, 2014, as required under PIT (Prohibition of Insider Trading) Regulations.

In its order, Sebi said that Kumar S and Jain by failing to make the requisite disclosures to the company and the stock exchange in two working days violated the provisions of PIT Regulations.
On May 20, 2014, Bansilal had acquired 2,88,300 shares of Sunil Agro Foods from one Kamala Bai through off market route. After the acquisition, Bansilal's shareholding in the firm increased to more than 5 per cent of the total shareholding of the company.

As per PIT Regulations, Bansilal was required to make the disclosure about increase in his shareholding to the company within two working days after acquisition of shares.

However, Bansilal did not make the requisite disclosure to the company in two working days, thereby violating PIT Regulations, Sebi noted.
For the violations, the Securities and Exchange Board of India (Sebi) imposed a penalty of Rs 3 lakh each on Kumar S, Jain and Bansilal.