Sebi penalises couple for multiple violations

Sebi today imposed a fine of Rs 54.5 lakh on a couple for failing to make an open offer and for not complying with the regulator's directions with regard to their shareholding in Sky Industries.
Vijay Jamnadas Vora and his wife Hina failed to make an open offer to the company's shareholders when their total stake crossed the 15 per cent threshold in late 2007. Besides, their shareholding in Sky Industries rose to more than 20 per cent by December 2008.
At the time of these violations, 15 per cent was the threshold beyond which an entity was required to make an open offer within a fixed time frame to the particular company's shareholders.

After these violations came to its notice, Sebi had in March 2014 directed the couple to make an open offer to the shareholders of Sky Industries.
As per the 2014 order, the open offer was to be made within 45 days. Besides, they were asked to pay 10 per cent interest along with a 'consideration amount' of around Rs 9.6 crore to the shareholders concerned.
"The amount of opportunity loss to investors due to the failure to make public offer" is little over Rs 1.10 crore, Sebi's Adjudicating Officer Dilip B J said in an order.

According to the order, the noticees (Voras) acted in concert and have acquired shares of Sky industries in gradual manner and breached the limit of 15 per cent on October 9, 2007.

"Consequently, noticees failed to make any public announcement within the prescribed timeframe prescribed in regulations. Rather, they continued to accumulate shares till their shareholding reached 20 per cent as on December 31, 2008," it added.
Further, the regulator noted that the pattern of acquisition clearly indicates that the Voras have disregard to regulatory requirements and continued their acquisitions, without making public announcement.
Taking into consideration these violations, the regulator has slapped a fine of Rs 54.5 lakh on the two individuals.
Sebi said by not complying with its March 2014 order, the individuals failed to pay the consideration amount along with annual interest of 10 per cent from Janary 14, 2008 till date.

"The consideration amount of one share as per calculated open offer price is Rs 120.76. The total consideration to be paid for eligible shares of 7,95,280 shares is Rs 9,60,38,012 and the interest amount is around Rs 8.64 crore," it said.