Sebi imposes Rs 10 lakh fine on Elara India Opportunities Fund

Market regulator Sebi today slapped a fine of Rs 10 lakh on Elara India Opportunities Fund Ltd for failing to make shareholding disclosures within the stipulated timeline.
The Securities and Exchange Board of India (Sebi), in an order, has imposed "a penalty of Rs 10 lakh on the noticee (Elara India Opportunities Fund Ltd)," for violating provisions of Prohibition of Insider Trading (PIT) Regulations.
A probe conducted by Sebi found that the fund, which was holding 8.85 per cent stake in Austral Coke and Projects Ltd during the quarter ended September 30, 2009, offloaded its entire stake in the firm during October 12-November 10, 2009.

It was further revealed that the shareholding of Elara India Opportunities Fund in the company had changed by more than two per cent on October 21, 2009 and October 23, 2009, and the fund was required to disclose such a change in its shareholding to the company. However, it failed to disclose the same.
"I find that the noticee (Elara India Opportunities Fund) failed to make the requisite disclosures regarding change in its shareholding consequent upon the transactions," Sebi Adjudicating Officer A Sunil Kumar said in his 10-page order.
Sebi said the fund has made certain disclosures recently after the issuance of showcause notice in August this year to it.

"It is pertinent to state here that timeliness is the essence of disclosure and delayed disclosure would serve no purpose at all. I am of the view that when mandatory time period is stipulated for doing a particular activity, completion of the same after that period would constitute default in compliance and not delay," Kumar added.