Sebi imposes fine of Rs 10 lakh on an individual for disclosure lapse

Markets regulator Sebi Wednesday imposed a fine of Rs 10 lakh on an individual for disclosure lapses in the shares of Gujarat Arth.

"There is no case for change in the penalty of Rs 10 lakh imposed earlier" through previous order, Sebi said in a fresh order.

The Securities Appellate Tribunal (SAT) had set aside Sebi's earlier order of February 2015 and directed the regulator to pass a fresh order in the case related to one Shivram Motial Meena.

The Securities and Exchange Board of India (Sebi) had conducted an investigation from October 2003 to January 2004 for alleged violation of Takeover and Insider Trading provisions.

In a fresh ruling, Sebi said during January, 2004, Meena acquired 5 lakh shares of Gujarat Arth from another entity in off-market transaction after which his share holding increased to 9.91 per cent in the firm.

Under Takeover and Insider Trading norms, Meena was required to the disclose his increased shareholding to the exchanges and the company as his stake crossed the threshold of five per cent.

However, he failed to disclose it and thereby violated Takeover and Insider Trading regulations, Sebi said.

In a separate order, Sebi Wednesday imposed fine of Rs 2 lakh on two promoters of RCL Foods for failing to disclose their reduced shareholding in the company.