Sebi imposes Rs 11 lakh fine on two individuals

Market regulator Sebi today slapped total penalty of Rs 11 lakh on two individuals for allegedly failing to make disclosures within stipulated time.
The Securities and Exchange Board of India (Sebi), in its order, imposed a total penalty of Rs 11 lakh on Kahaan Vasa and Karan Vasa for their delay in complying with the provisions of SAST (Substantial Acquisition of Shares and Takeover) Regulations.
According to the regulator, these entities had acquired 6.89 per cent each of the shareholding of Contech Software Ltd on June 22, 2006 and 1.88 per cent each on February 5, 2007.
They were required to make disclosures with respect to these acquisitions made by them to the company as well as the stock exchanges within two days of such purchase. However, they failed to do so.

Besides, these entities stated that they have received these shares from their grandmother pursuant to a gift deed. However, they have not submitted any documents in support of their submission.
As per Sebi's rules, they were required to submit a report along with supporting documents to Sebi giving all details in respect of acquisitions which entitled them 15 per cent or more voting rights of the company within 21 days of the date of acquisition.