SKM Egg settles disclosure lapses case with Sebi, pays Rs 15 lakh

SKM Egg Products Exports has settled with Sebi a case of alleged disclosure lapses by paying over Rs 15 lakh towards settlement charges.

The regulator had initiated adjudication proceedings against the egg exporter in December 2017 and sent a notice alleging that there was an off-market transfer of around 23 lakh shares of the company among the promoters between March 2010 and June 2010.

But the firm allegedly failed to make disclosures of transfer of shares under the Prohibition of Insider Trading provisions, Sebi said in an order on Thursday.

Further, managing director and a promoter sold shares of the firm on four occasions where the shares sold were more than 2 per cent of share capital of the company during July 2010.

However, it is alleged that SKM had not made any disclosure in this regard to the stock exchanges and thereby violated the Substantial Acquisition of Shares and Takeovers (SAST) and the PIT regulations, the regulator said.

While the proceedings were pending, SKM filed an application under the settlement mechanism.

The company in its meeting with the regulator's internal committee in December 2018 proposed to pay 15.10 lakh towards settlement charges.

The amount was approved by the panel of whole-time members of Sebi, the regulator said in the order.

SKM paid Rs 15.12 lakh towards settlement charges, following which the regulator has disposed of the proposed adjudication proceedings in respect of the applicant for the defaults.