Sebi slaps Rs 1.32 crore penalty on GMM Pfaudler promoters

Market watchdog Sebi today slapped a total penalty of Rs 1.31 crore on 12 promoter entities of GMM Pfaudler for failing to make relevant disclosures within the stipulated time for years 2004 to 2012.
In an order today, the Securities and Exchange Board of India (Sebi) has imposed Rs 16 lakh fine on GMM Pfaudler promoter Pragna S Patel and Rs 12 lakh penalty each on two other promoters Shree A J Patel Charitable Trust and Panna Patel.
Besides, the market regulator levied a penalty of Rs 11.50 lakh each on Pomilata Patel and Patel HUF, while it slapped a fine of Rs 10 lakh each on five other promoters.

It has imposed Rs 9.50 lakh and Rs 9 lakh on promoters Skyline Millars and Uttarak Enterprises respectively.
According to Sebi, entities being the promoters of the company were required to within 21 days from the financial year ending March 31 disclose the number and percentage of shares or voting rights held by them and by persons acting in concert with them, in GMM Pfaudler to the company itself.
"The noticees, I find, had violated... Takeover regulations, 1997 on annual basis as well as on record dates of dividend during the relevant periods," Sebi adjudicating officer Anita Kenkare said in the order.

"Such non-compliance/ delayed compliance with disclosure requirements by the promoters of a listed company undermines the regulatory objectives and jeopardises the achievement of the underlying policy goals," Kenkare added.
Sebi had come across the non-compliances after an open offer document was submitted with it to acquire the shares of the company.
Shares of GMM Pfaudler are listed on the BSE.