Sebi imposes penalty of Rs 26 lakh in Vybra Automet case

Market regulator Sebi has slapped a total penalty of Rs 26 lakh on Vybra Automet Ltd, its two erstwhile promoters and three other individuals for violating takeover norms.
The Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs six lakh on Vybra Automet for delay in making requisite yearly disclosures with respect to holdings of its promoters to the stock exchanges, as required under the 'Substantial Acquisition of Shares and Takeovers' regulations.
In a separate order, Sebi has slapped a cumulative fine of Rs 15 lakh on Vybra Automet erstwhile promoters -- VA Norhi and BY Somayajulu -- for failure to make a public announcement for acquisition of firm's shares, prescribed under the norms.

Separately, it has levied a total fine of Rs 5 lakh on Vilas Valunji and his PACs (Person Acting in Concert) Partha Debnath and Janardhan Shriniwas Purandare for not making public announcement on time to buy Vybra Automet shares.
The three orders were issued on January 20.
In the case of Vybra Automet, Sebi said the company "had failed in making the yearly disclosures of the holdings of the promoters or persons(s) having control over the company to all the stock exchanges on which the shares of the noticee (firm) were listed within the stipulated time frame...."

"...By not complying with the regulatory obligation of making the disclosures, the noticee had not provided the vital information within the prescribed time which is detrimental to the interest of investors in securities market," it added.

Meanwhile, Sebi said that the two promoters had acquired 12.61 lakh shares of Vybra Automet back in 2000-01 that hiked their stake in the company to 50.25 per cent from 19.95 per cent. However, they had failed to make the public announcement regarding the same to company's shareholders.
In addition, both had also not made disclosures about change in their shareholding in the firm in the years 2004-05 and 2005-06 to the bourses within the prescribed time limit.
Accordingly Sebi said it is imposing "a total penalty of Rs 15,00,000 on the noticees i.E. VA Norhi and BY Somayajulu" which is to be "jointly and severally" paid by them.

In the third order, Sebi noted that Valunji, Debnath and Purandare had entered into share-purchase agreement with the firm's promoters -- Norhi and Chaitu Engineering -- in 2010 to buy 13.89 per cent stake of the firm but had made the public announcement for the same with a delay of 32 days.
As per the norms, any entity along with PACs will be able to acquire additional shares in excess of 5 percent only if it makes a public announcement of offer not later than four working days of entering into an agreement.