Sebi imposes Rs 50 lakh fine on 8 individuals

Capital market regulator Sebi today slapped a cumulative fine of Rs 50 lakh on eight individuals for allegedly failing to make shareholding disclosures within the stipulated timeline.
The regulator in its order has imposed "a consolidated penalty of Rs 50 lakh on Bhanwarlal H Ranka, Pradeep B Ranka, Kusum B Ranka, Sangeetha P Ranka, Anjana B Ranka, Arun B Ranka , Rachana A Ranka and Kantilal G Bafna... For the failure to comply with the provisions of...Sebi of India (Substantial Acquisition of Shares and Takeovers) Regulations.
It was alleged that these individuals had failed to make public announcements under SAST regulations on three occasions. They were required to make the announcements within four working days of such acquisitions.

"The failure to make public announcements on three occasions makes all the noticees (eight individuals)liable for penalty," Sebi said.
According to the regulator, these entities, who were holding 68 per cent stake in Residency Projects and Infratech Ltd acquired 100 shares of the company in August 2004, 1900 shares in February 2006 and another 200 shares in March 2007.
"The acquisition of 100 shares on August 4, 2004 and 1900 shares on February 16, 2006 are governed by Regulation it stood prior to its amendment with effect from May 26, 2006 and the acquisition made on March 31, 2007 is governed by the amended provision (with effect from May 26, 2006).

According to norms any acquirer, who has 55 per cent but less than 75 per cent of the shares or voting rights in a company, has to make a public announcement if they acquire any additional share or voting right in the company.

In a separate order, Sebi has disposed off a case against erstwhile promoters of Midland Polymers Limited in the matter of alleged violation of 'Takeover' regulations.
The erstwhile promoters --Nikhar Investment and Credit, Mukund Kumar Saboo, Suryajyoti Vanijya & Viniyog, Surinder Bhuraria, Midland Plastics, Sudhir Lakhotia, and Alka Lakhotia are exempted from the provisions of Sebi Regulations, in view of the scheme sanctioned by Board for Industrial and Financial Reconstruction (BIFR) through an order in February, 2009.

"As such, no action can be taken against the noticees (erstwhile promoters)in so far as they relate to the promoters holding in the sick company during the period the company was declared sick," Sebi said in its order.