Palred Technologies Chairperson, 15 others settle case with Sebi, pay Rs 13 lakh

Sixteen entities including chairperson and a promoter of Palred Technologies Monday settled with Sebi a probe regarding alleged shareholding disclosure lapses by paying over Rs 13 lakh as settlement charges.

P Srikanth Reddy, current chairperson of Palred Technologies, promoter P Soujanya Reddy, Suresh Rajpal, D Vidyasagar, Boon Hwee Koh, among others, were persons acting in concert (PACs), according to Sebi's order.

During the filing of draft offer pertaining to acquisition of 26 per cent equity stake in Palred Technologies by P Srikanth Reddy, the regulator observed that there was a change in the shareholding of promoters/PACs of the firm during April-June and July-September quarter of 2005.

In April 2018, the regulator sent a notice after it found that the entities failed to make requisite disclosures in 2005 and thereby, allegedly violated SAST (Substantial Acquisition of Shares and Takeovers) regulations.

While the proceedings were pending, the entities filed an application under the settlement mechanism, without denial or admission of guilt.

The entities proposed to pay Rs 13.19 lakh towards settlement charges during a meeting with the regulator's internal committee in February this year, the Securities and Exchange Board of India (Sebi) said.

On March 5, P Srikanth Reddy remitted the Rs 13.19 lakh on behalf of others and accordingly, the proceedings initiated against the sixteen entities were disposed of, the regulator said.

The enforcement actions, including restoring or initiating the proceedings, could be initiated if any representation made by them is found to be untrue, Sebi said.