Sebi fines Glaxo for delayed disclosure on Indian arm

Capital market watchdog has slapped a fine of Rs 25 lakh on the group

The Securities and Exchange Board of India (Sebi) on Tuesday slapped a fine of Rs 25 lakh on Glaxo Group, a promoter entity of drug maker Glaxo SmithKline Pharmaceuticals, for failing to make timely disclosures about its aggregate shareholding to the company and the stock exchanges.

Sebi came across the violations by Glaxo Group while examining a draft letter of offer filed by Glaxo SmithKline Pharmaceuticals along with UK-based Glaxo SmithKline Plc and Glaxo Group, to acquire 24.33 per cent stake in the India-listed group entity.

As on quarter ending September, 2014, Glaxo Group held 35.99 per cent stake in Glaxo Smithkline Pharmaceuticals as the largest promoter shareholder.

Penalties totalling to Rs 25 lakh which need to be paid within 45 days have been imposed by the regulator for violating various provisions of Sebi’s Takeover Regulations.

Under these norms, a promoter of a listed company has to, disclose, together with persons acting in concert with him, the aggregate shareholding and voting rights as on March 31, in the firm, within a prescribed time period, to the relevant stock exchanges as well as the company.

Sebi found that Galxo Group, as a promoter group entity, was under an obligation to disclose the aggregate shareholdings to the BSE and NSE as well as to Glaxo Smithkline Pharmaceuticals India for the year 2007.

However, the said disclosures were admittedly made by the entity with an aggregate delay of 60 days.

The market watchdog also noted that Glaxo Group was required to disclose its shareholdings for the year 2012 and 2013, but made the same with an aggregate delay of 158 days.