Sebi slaps Rs 62 lakh fine on 7 entities for violating takeover norms

Markets regulator Sebi on Thursday levied a total penalty of Rs 62 lakh on seven entities for failing to make public announcement with regard to acquisition of Parichay Investments Ltd shares.

The entities have violated Substantial Acquisition of Shares and Takeovers (SAST) norms, Sebi noted in separate orders issued on Thursday.

During an investigation conducted by the regulator, it noted that the holdings of the entities in Parichay Investments crossed the threshold limit of 15 per cent on several occasions and they were required to make public announcement to acquire shares in the firm.

However, the entities failed to do so, Sebi noted in its orders.

Under the SAST norms, an entity has to make a public announcement to acquire shares of a company in case its shareholding in the firm goes beyond 15 per cent.

In similarly worded orders, Sebi said "the noticee deprived the public shareholders from their valuable right and the default on the part of the noticee are repetitive in nature, I am of the view that this is a fit case to impose such penalty that commensurate with the gravity of the violations committed by the noticee."