Sebi slaps Rs 6.5 L fine on 3 entities in non-disclosure cases

Capital markets regulator Sebi today imposed a penalty totalling Rs 6.5 lakh on three entities for failing to make shareholding disclosures within the stipulated timeline.
The Securities and Exchange Board of India (Sebi) has levied a fine of Rs 2.5 lakh each on Anushikha Investments and Swaran Financial and Rs 1.5 lakh on York Financial Services.
Anushikha picked up 42,425 shares of Emergent Global Edu and Services (formerly known as Shree Om Trades) in March 2013, following the acquisition, its stake went up to 5.31 per cent from 4.38 per cent.
Swaran, who held 3.94 per cent stake in Emergent Global in March 2013, purchased one lakh shares of the company. Pursuant to this, its stake increased to 6.13 per cent.

Since the shareholding of both Anushikha and Swaran had crossed the threshold limit of five per cent and they were under an obligation to make the necessary disclosures to exchange and the company within two working days under SAST (Substantial Acquisition of Shares and Takeovers) and PIT (Prohibition of Insider Trading) Regulations.
However, the two entities failed to make the necessary disclosures.

York was holding 10.78 per cent stake in Emergent Global on March 21, 2013. On March 2013, York sold two lakh scrips and its stake fell to 6.4 per cent and it again offloaded 1.5 lakh shares on March 25 reducing its holding to 3.12 per cent. It further sold a little over one lakh shares on March 26, decreasing its stake to 0.93 per cent.

However, York failed to make these disclosures within the stipulated time period.
In a separate case, the capital markets watchdog has imposed a penalty totalling Rs 9 lakh on Sankar Homes and six individuals for not shareholding disclosures within the required timeframe.
Sebi has slapped a fine Rs 7 lakh on Sankar Homes, D Ravisankar, R Vallabai, K R Jain, R Rajasankar, S Durai V P Ramanathan. Further, it levied a penalty of Rs 2 lakh on Sankar Homes.
These entities had violated Takeover Regulations on 11 consecutive occasions.
They had "deprived the vital information to the public by not disclosing to the company and the stock exchanges and thereby violated the statutory requirements.