Two companies settle case with Sebi on payment of fee

Two firms -- Chartered Finance & Leasing and Dwarkadhish Trading -- have settled case related to alleged non-compliance of 'takeover' norms with regulator Sebi after a payment of Rs 2 lakh each as settlement fee.
It was alleged that Chartered Finance & Leasing had purchased 3.32 lakh shares of Dhampure Specialty Sugars along with Dwarkadhish Trading Private Ltd, which had bought 1.68 lakh shares of the firm on various dates during October-December, 2012.
Both the companies were allegedly acting in concert with each other and collectively bought 5 lakh shares of Dhampure Specialty Sugars as a result of which their combined stake in the company increased from nil to 6.98 per cent.

Since the collective shareholding of the two firms had exceeded 5 per cent of the total shareholding, they were required to make the necessary disclosures to the stock as well as the company.
While proceedings against these companies were in progress, they offered to settle the matter on payment of Rs 2 lakh each as settlement fee.
Thereafter, Sebi's High Powered Advisory Committee after deliberations, recommended these cases for settlement on the payment of the amount.

This was also approved by Sebi's panel having whole time members, following which the two firms remitted an amount of Rs 2 lakh each.

Consequently, Sebi, in two separate orders dated November 24, has directed that this "settlement order disposes of the adjudication proceedings initiated against the noticee (Chartered Finance & Leasing and Dwarkadhish Trading)."
However, Securities and Exchange Board of India (Sebi) said that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by these companies is found to be untrue.