Sebi slaps Rs70.25 lakh fine in Shree Bhawani Paper Mills case

Market regulator Sebi today slapped total penalty of Rs 70.25 lakh on Shree Bhawani Paper Mills and its 17 promoter entities for violating disclosure norms.
While the Securities and Exchange Board of India (Sebi) imposed a penalty of Rs 25,000 on Shree Bhawani Paper Mills, penalties ranging from Rs 2 lakh to Rs 6 lakh were imposed on promoters for violating norms.
Some of the promoters have to be pay the penalties "jointly and severally".
The market regulator found that the promoters of Shree Bhawani Paper Mills had failed to make timely disclosure for the years 2006 to 2009 about acquisition of company's shares through rights issue, among others.

The promoters included Neera Tandon, Akshat Tandon, Alankar Tandon, Gaurav Tandon and Badri Vishal Tandon.
Besides, Sebi said that the company had failed to make mandatory annual disclosures for the years 1998 and 2001.

The watchdog had come across the violations after examining an open offer made by an individual in 2011 to acquire 20 per cent stake of Shree Bhawani Paper Mills.
In a separate order today, Sebi imposed a penalty of Rs 40.50 lakh on Yamini Investments Company and its 7 erstwhile promoters for failing to make requisite disclosures to the stock exchanges.
The promoters include Munjal M Jayakrishna, Devyani Rajesh Jayakrishna, Padma Jayakrishna, Gokul M Jayakrishna, Shivani R Jayakrishna, Rajesh Jayakrishna and Narayan Jha.

"As a listed company and as promoters of the listed company, the noticees had a responsibility to comply with the disclosure requirements under the SAST Regulations and/ or PIT Regulations, as applicable, in accordance with their spirit, intention and purpose," Sebi said.
The penalties on promoters range from Rs 2 lakh to Rs 6 lakh.