Sebi imposes Rs 30-lakh penalty on Kelvin Fincap, 3 promoters for violating market norms

Markets regulator Sebi Thursday levied a total penalty of Rs 30 lakh on Kelvin Fincap and its three former promoters for violating listing agreement norms as well as provisions of insider trading regulations.

The promoters facing penalty are Keyur M Shah, Keyur M Shah (HUF) and Kavita K Shah.

Sebi during investigation between November 2011 and May 2014 found that the promoters of the firm had transferred their shares through off-market transactions to certain entities which led to change in promoter shareholding of Kelvin Fincap.

Consequent to the transfer of shares, promoters were required to make disclosures regarding change in their shareholding to the company and the BSE, as required under the provisions of the PIT (Prohibition of Insider Trading) Regulations.

Sebi said that though the promoters made required disclosure to the company within the stipulated time period, they failed to make the same disclosure to the stock exchange.

Therefore, a penalty of Rs 5 lakh each was imposed on the former promoters.

Besides, in a separate order, Sebi said Kelvin Fincap Ltd, even after receiving the information regarding change in the shareholding of the promoters, failed to make requisite disclosure to the stock change and thus violated provisions of PIT norms.

Further, the firm also failed to disclose the change in the shareholding due to transfer of shares by the promoters, in the filing for the quarter ended June 2012, in violation of listing agreement and the SCRA (Securities Contracts (Regulation) Act) norms.

Subsequently, a total penalty of Rs 15 lakh was imposed on Kelvin Finacap Ltd, formerly known as Dahyabhai Sons Ltd.