Sebi levies Rs 8 lakh fine on Intercon Finance, 4 other entities for violating takeover norms

Acting against contravention of takeover norms, markets regulator Sebi has slapped a total fine of Rs 8 lakh on Intercon Finance Pvt Ltd and four other entities.

The fine amount has to be paid "jointly and severally" by Intercon Finance and Munjal M Jaykrishna, Radhika Jaykrishna, Gokul M Jaykrishna and Paru M Jaykrishna, Sebi said in an order.

The matter pertains to acquisition of shares of AksharChem (India) Ltd by the entities.

Sebi during an investigation found that the entities violated provisions of the Substantial Acquisition of Shares and Takeovers norms on various occasions in 1997, 1998, 2000, 2004 and 2005.

"They were under legal obligation to disclose purchase/sale of the...2 per cent or more shares of the company to the company as well as the stock exchange within two days of such purchase/sale," Sebi said.

However, they failed to do so.

Besides, the entities violated SAST norms "by failing to make a public announcement to acquire shares in accordance with the Takeover Regulations on account of their acquisition of shares of the target company (AksharChem) on 07.04.1997, 06.04.2000 and 22.06.2000," Sebi said.

Accordingly, the regulator has imposed the monetary penalty on the entities.

In a separate order, the regulator levied a fine of Rs 5 lakh on International Constructions Ltd for non-compliance with the minimum public shareholding (MPS) requirements within stipulated timelines.

"In the instant case, the material on record indicates absence of proactive and timely efforts on the part of the noticee to initiate action to ensure compliance with MPS requirements," Sebi noted.

According to a separate order, merchant banker First Overseas Capital Ltd faces a penalty of Rs 5 lakh for concealing certain information in the prospectus of Powerhouse Fitness and Realty Ltd.

Sebi noted that Powerhouse Fitness and Realty had issued securities to the promoters at a price lower than the issue price in the preceding one year. However, specific details such as names of persons to whom such specified securities were issued and whether they were part of promoters group, reasons for such issue and the price were not disclosed in the final prospectus.

"Any concealment of facts/misrepresentation/exaggeration of facts or non-disclosure of material information in the prospectus/offer documents may lead to the investors making a wrong investments decisions which may result into adverse financial consequences," Sebi said.