Sebi slaps Rs 70 lakh on Comfort Fincap former promoter group

Market regulator Sebi today imposed a total penalty of Rs 70 lakh on erstwhile promoter group entities of Comfort Fincap for failing to make public announcements with respect to acquisition of the firm's shares.
Securities and Exchange Board of India (Sebi) found that eight former promoters of Comfort Fincap including Saraf Holdings had made inter-se transfer of firm's shares in fiscal 1997-98, 1998-99, 2004-05, 2005-06 but did not make public announcement to the investors for the same.
Through two separate orders today, Sebi has imposed a cumulative penalty of Rs 50 lakh on -- Saraf Holdings, Surface Holdings, Tower Properties, Aradhita Saraf, Shyam Sunder Saraf, Rama Devi Saraf, Sujata Saraf and Dev Saraf.

At the same time, Sebi has also imposed an additional fine of Rs 20 lakh on Saraf Holdings for failure to make an open offer with respect to acqusition of certain number of shares in 2004 and 2005.
Sebi noted that inter-se transfer of shares among the promoter group entities did not qualify from an exemption of making an open offer as they had not met with certain requisite conditions prescribed under the norms. Accordingly, the promoters were required to make public announcements which they failed to do.
"...The noticees made certain acquisitions by way of inter se transfers during financial years 1997-98, 1998-99, 2004-05(twice), 2005-06," Sebi said in an order today.

"The noticees failed to make public announcement as required under the...Regulations," it added.
In the order against Saraf Holdings, Sebi noted that "the noticee, consequent upon acquisitions of shares...Failed to make public announcement as required under the said regulations".
The market regulator came across the violations by the former company promoters while examining a letter of offer made by one Luharuka Commotrade in 2013.