Sebi warns AHCIL against violation of norms

Sebi has asked Advance Hovercraft & Composites India Ltd (AHCIL) to be "careful and cautious" in carrying out stock broking activity following violations of certain regulations.
In a matter related to shares of Shonkh Technologies International Ltd, the market regulator has also warned one of the company's former director Prashant Kumar.
An investigation by Sebi found that AHCIL violated norms by selling shares of Shonkh during lock-in period. Kumar was connected with Shonkh Technologies at the time of allotment of shares and with AHCIL at the time of dematerialisation of shares.
Warning the noticees AHCIL and Kumar, Sebi asked them to be "careful and cautious in the conduct of its stock broking activity and to adhere to and comply with all the statutory provisions while carrying out its activities in the securities market".

In its order dated November 20, the watchdog observed that the violations in the case pertain to the years 2001 and 2002.
"The only charge against the noticees is that they have transferred shares when they were under lock-in. There is no charge or allegation in the show cause notice that the noticees indulged in the fraudulent or unfair trade practice.

"Considering these facts and circumstances...A warning to the noticees will be commensurate with violation charged in the show cause notice," it noted.
The shares were allotted to AHCIL in July 2000 and the lock-in period was supposed to end in July 2013, but the shares were sold before that period.

Kumar was the director of Shonkh Technologies and AHCIL during the period July 2000-December 2004 and December 2001-December 2004, respectively.