Sebi settles case with Tak Machinery's former promoter

Sebi today disposed of the matter against Tak Machinery & Leasing's former promoter after he paid over Rs 3 lakh as settlement fee to the market regulator in a case related to alleged violation of disclosure norms.
The Securities and Exchange Board of India said that "this settlement order disposes of the said adjudication proceedings pending in respect of the noticee".
Sebi said it had found that Vishal K Mahadevia had on September 10, 2010 sold 17,890 shares (2.54 per cent stake) of Tak Machinery.
According to the Sebi ruling, as the transaction resulted in the sale of more than 2 per cent shares of the company, Mahadevia was required to make the disclosures as stipulated under the norms, which he allegedly failed to do.

While adjudication proceedings were in progress, Mahadevia filed for a settlement of the case, under Sebi's consent order mechanism. He made a proposal to pay Rs 3.06 lakh as settlement charges.
Subsequently, the proposed settlement terms were approved by Sebi's High Powered Advisory Committee and the panel of the regulator's whole time members. Following, this Mahadevia remitted the settlement amount.
Sebi noted that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by Mahadevia is found to be untrue.
Under the consent mechanism, entities can seek to settle cases with the regulator after payment of certain charges and and other expenses without admission of guilt.