Sebi slaps Rs 8L fine on Shri Housing in Premier Energy case

Market regulator Sebi has slapped a fine of Rs 8 lakh on Shri Housing for allegedly failing to make public announcement about acquisition of shares within the stipulated time.
The Securities and Exchange Board of India (Sebi) in an order yesterday, imposed "a penalty of Rs 8 lakh... On the noticee, Shri Housing Pvt Ltd which will be commensurate with the violations committed by it."
Shri Housing had entered into two Share Purchase Agreements (SPAs) each dated March 31, 2008, the first SPA was entered between the noticee and Maika Holdings, Berhad, Malaysia for acquiring 24 lakh shares (24 per cent stake) of Premier Energy and Infrastructure Ltd and the second SPA with the existing promoters and promoter group of the company for acquiring 16.47 lakh shares (16.47 per cent stake).

The equity shares of the company covered under the respective SPAs aggregated to 40.47 lakh shares (40.47 per cent) of the equity and voting share capital of Premier Energy and Infrastructure Ltd.
It is, thus, observed that Shri Housing had acquired more than 15 per cent share of the company pursuant to the two SPAs and thereby triggered the Takeover Regulations and it was required to make a public announcement not later than four working days of entering into the agreement for acquisition of such share.
According to Sebi, there was a delay of 89 days on the part of Shri Housing in making the public announcement after the acquisition of 40.47 lakh shares pursuant to two SPAs dated March 31, 2008.