Emami's Agarwal says Sebi's fine sans merit; will challenge it

Emami today said its Chairman R S Agarwal has informed that Rs 8 lakh fine imposed on him by the Sebi is "without merit" and he will appeal before the Securities Appellate Tribunal to vindicate his stand.
Markets regulator (Sebi) on Wednesday slapped a fine of Rs 8 lakh on Agarwal for expressing his desire to buy Amrutanjan Healthcare (AHL) to media without first discussing in its board, which impacted the trading as well as the price of the scrip of AHL.
The company in a regulatory filing said the fine was imposed for answering a question put to him by a reporter during a telephonic conversation that occurred more than seven years ago.

"The Chairman has informed the company that the findings in the Sebi order are without merit and he is in the process of consulting his legal advisors to prefer and appeal before the Securities Appellate Tribunal (SAT), to vindicate his stand in the matter," Emami Ltd said.
The regulator had said Emami as well as Agarwal have confirmed that the board of directors did not make any plan of acquiring AHL before and after the publication of the statement in the media.
It further said the desire expressed by Agarwal without first discussing the same in its board is a reckless statement, which impacted the closing price of AHL that rose by almost 20 per cent on April 5, 2010 on the exchanges, and the traded volumes also jumped by 188 per cent and 228 per cent, respectively on NSE and BSE after the media report.

As per Securities and Exchange Board of India (Sebi) regulations, Agarwal violated the provisions of PFUTP (Prohibition of Fraudulent and Unfair Trade Practices ) Regulations.