Sebi settles Velan Hotels matter with 10 entities

Markets regulator Sebi today settled with 10 entities a case related to alleged violation of takeover regulations in the matter of Velan Hotels after they paid Rs 27.62 lakh towards settlement.
It was alleged that the entities had failed to comply with SAST (Substantial Acquisition of Shares and Takeovers) Regulations with regard to an increase in their shareholding from 58.28 per cent to 59.80 in Velan Hotels between March, 2009 and December, 2009.
The entities had filed an application to settle the adjudication proceedings, the Securities and Exchange Board of India (Sebi) noted in an order.
The regulator's High Powered Advisory Committee (HPAC) recommended the matter for settlement upon payment of Rs 27.62 lakh by the entities. This was also accepted by the panel of whole time members of Sebi.

Last month, the entities paid the settlement amount of Rs 27.62 lakh, following which Sebi disposed of the pending adjudication proceedings.
The entities are E V Muthukumara Ramalingam, Ganeshan P, Shree Vallee Enterprises, Sasikala M, M R Gautham, Pallavi M, Arun G, Vishnu G, Muthulakshmi G and Sharmada Gautham.
The regulator said that if any representation made by the entities in the proceedings is subsequently discovered to be untrue, enforcement actions including reopening of the pending proceedings can taken against them.