Shareholding disclosure lapses: Sebi settles case with 2 entities

Two companies today settled cases related to alleged shareholding disclosure lapses with markets regulator Sebi after they paid nearly Rs 5 towards settlement charges.

According to two separate Sebi orders, Kumabhi Investments has paid Rs 2.82 lakh, while Abhikum Leasing and Investments has shelled out Rs 2.01 lakh.

Sebi agreed to settle proposed adjudication proceedings in the matter of SBEC Sugar after it was approached by these two entities with a plea under the settlement regulations "without admitting or denying the findings of fact and conclusion of law".

"The proposed adjudication proceedings for the alleged default... is settled.... and Sebi shall not initiate any enforcement action against the applicant (Kumabhi Investments and Abhikum Leasing and Investments) for the said defaults," the regulator said in similar-worded orders.

The markets watchdog had initiated proceedings against the entities for the delayed compliance of the SAST (Substantial Acquisition of Shares and Takeovers) Regulations.

It was alleged that Kumabhi Investments had made delayed disclosure about change in shareholding from 5.01 per cent to 0.01 per cent in the scrip of SBEC Sugar, while Abhikum Leasing and Investments did not make any disclosure with regard to change in stake from 2.96 per cent to 7.40 per cent in the company within the prescribed time frame.

Pending adjudication proceedings, the two entities had offered to settle the case on payment of money as settlement charges.

Thereafter, Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of the amount. This was also approved by Sebi's panel of whole-time members, following which the two entities paid the amount.

Accordingly, Securities and Exchange Board of India (Sebi) has disposed of the adjudication proceedings initiated against them.

It further said that enforcement actions, including commencing of the proceedings, could be initiated if any representation made by them is found to be untrue.