Sebi fines Valecha Investments for disclosure lapses

Markets regulator Sebi on Thursday levied a fine of Rs 3 lakh on Valecha Investments Pvt Ltd for failing to make requisite disclosures in accordance with takeover norms and insider trading regulations.

"The obligation to make disclosures within the stipulated time frame is mandatory and penalty is attracted for non-compliance with the mandatory obligation," Sebi said.

The order follows an examination conducted by Sebi in the scrip of Valecha Engineering Ltd (VEL) between October 2018 and December 2018.

"As per the transaction statement of the noticee as provided by National Securities Depository Limited and Central Depository Services (India) Limited for the period October 01, 2018 to December 31, 2018 it is observed that Yes bank, the depository participant had invoked pledge of 29,28,504 shares of VEL held by the noticee," Sebi noted during the probe.

Valecha Investments failed to make timely disclosures with respect to the transactions of invocation of pledge of shares of VEL, Sebi said.

Accordingly, Valecha Investments has been fined for violating provisions of Prohibition of Insider Trading (PIT) regulations and Substantial Acquisition of Shares and Takeovers (SAST) norms.

"The timely disclosures of invocation of pledge of shares of VEL by the noticee under the relevant provisions of the PIT Regulations and the SAST Regulations, were of significant importance from the point of view of the investors," the regulator said.