Sebi imposes Rs 20 lakh fine on 12 entities

Market regulator Sebi has slapped a fine totalling Rs 20 lakh on 12 entities for allegedly not disclosing shareholding details within the stipulated timeline.
The Securities and Exchange Board of India, in an order yesterday, has levied the penalty for violating provisions of of SAST (Substantial Acquisition of Shares and Takeovers) Regulations.
They "shall be jointly and severally liable to pay the monetary penalty."
The shareholding of these entities had increased from 48.64 per cent to 63.26 per cent in SITI Cable Network Ltd as on quarter ending December 2009. They were part of promoter group during that time.
The increase was more than the prescribed 5 per cent limit.

However, the increase in shareholding was pursuant to the Rights Issue, which is exempted from open offer requirements.
Although, they were required to submit a report, giving all details in respect of acquisition which (taken together with shares or voting rights) would entitle them to exercise 15 per cent or more of the voting rights in a company, to Sebi within 21 days from the date of allotment of rights issue, which they failed to do.
Among the 12 entities are Ashok Mathai Kurien, Laxmi Narain Goel, Sushila Goel, Ambience Business Services, Briggs Trading Company, Ganjam Trading Company, Essel Infraprojects, Veena Investment, Delgrada Ltd, Lazarus Investments, Jayneer Capital and Sprit Textiles (for Churu, Prajatma and Premier i.E., the entities which got merged into Sprit).