Sebi imposes Rs 25-lakh penalty on 10 entities

Sebi has imposed a fine of Rs 25 lakh on 10 entities for their alleged failure to make timely disclosures about their acquisition of shares in Rajratan Global Wire.
The market regulator had carried out an examination of Rajratan Global Wire's shares following alleged irregularities. It was found that 10 entities, including those belonging to the promoter group, did not make proper public disclosures about their shareholdings.
Certain promoter group entities along with PACs (Persons Acting in Concert) had acquired the company's shares through a bulk deal beyond the permissible limit on various occasions dating back to early 2009.
"... The defaults are repetitive in nature. Therefore, the noticees by not making public announcements on various occasions on acquiring shares of Rajratan have not only failed to comply with the provisions of SAST (Substantial Acquisition of Shares) regulations, but also deprived the shareholders of the exit opportunity at relevant time, which has to be viewed seriously," Sebi said.

In his order, Sebi's Adjudicating Officer D Sura Reddy noted that it is not possible to quantify, any gain or unfair advantage accrued to the noticees or the extent of loss suffered by investors as a result of the default.
While the showcause notice was issued to 14 entities, the regulator has fined only 10 of them.
Sebi has slapped the fine on 10 entities, including Rajratan Investments, Chandanmal Chordia, Shantadevi Chordia, Chandanmal Rajmal, Sunil Chordia, Rajratan Resources and Sangita Sunil Chordia.
According to Sebi, the allegation of failure to make disclosure to the company and the BSE stands established against these entities.