Symphony case: Sebi slaps Rs 50 lakh fine on 9 entities

Markets regulator Sebi today imposed a total penalty of Rs 50 lakh on nine promoter entities of Symphony Ltd for failing to make adequate disclosures regarding acquisition of shares of the firm.
After finding that the nine entities -- Jonaki A Bakeri, Hirva A Bakeri, Achal Anil Bakeri, Achal Anil Bakeri HUF, Rupa Achal Bakeri, Pavan Bakeri, Hansa Bakeri, Oras Investments and Paratam Investments -- violated SAST (Substantial Acquisition of Shares and Takeovers) Regulations, the regulator imposed a fine of Rs 50 lakh.
Jonaki A Bakeri, along with persons acting in concert (PACs), had acquired 50,000 shares of consumer electronics firm Symphony Ltd on May 6, 2009 and 43,161 shares on May 7, 2009. Hirva A Bakeri had acquired 75,000 shares of the firm on May 6, 2009, along with PACs, through bulk deal.

Following the acquisition, these entities were required to make public announcement under the SAST Regulations of Securities and Exchange Board of India (Sebi).
"The noticees (9 entities) by not making public announcement, on acquiring shares of Symphony on May 6, 2009 and May 7, 2009, by way of bulk deals, have not only failed to comply with the provisions of SAST Regulations but have also deprived the shareholders of the exit opportunity at the relevant time, which has to be viewed seriously," Sebi General Manager and Adjudicating Officer D Sura Reddy said in an order.