Sebi slaps over Rs 1 cr fine on three entities

Market watchdog Sebi today imposed a total fine of over Rs 1 crore on Hooghly Mills Project and Hooghly Stocks & Bonds and Mega Resources for failing to make public announcements with regard to acquisition of shares.
The Securities and Exchange Board of India (Sebi)has levied a fine of Rs 52 lakh on Mega Resources and a cumulative penalty of Rs 50 lakh on Hooghly Mills Project and Hooghly Stocks & Bonds for the failure to comply with the provisions of SAST (Substantial Acquisition of Shares and Takeover) Regulations.
It was alleged in the show cause notice that Mega Resources, being one of the promoters of Waverly Investments, had acquired 25,000 equity shares (10 per cent stake) on February 12, 2001. Following the acquisition, shareholding of Mega Resources increased from 50.46 per cent to 60.46 per cent.

Also, it was alleged that on April 15, 2009 Hooghly Mills Projects and Hooghly Stocks & Bonds (being the promoters of Waverly Investments) had acquired 20,000 (4 per cent) and 12,300 (2.46 per cent) shares of the company.
Pursuant to the acquisition, shareholding of Hooghly Mills Projects increased from 60.46 per cent to 64.46 per cent, while Hooghly Stocks & Bonds' stake rose from 64.46 per cent to 66.92 per cent.
At this juncture, the three entities were required to make a public announcement within four working days of such acquisition. However, they failed to do so.
Besides, Mega Resources were required to make disclosure within two days of the acquisition to the company as well as to the stock exchanges.