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Sebi fines four entities for disclosure lapses in SRK Industries case

Sebi fines four entities for disclosure lapses in SRK Industries case

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Sebi | Fine

Press Trust of India  |  New Delhi 

Sebi
Securities and Exchange Board of India (Sebi) had conducted an investigation in the matter of trading in SRK Industries' shares by its promoters for the period of March 2010 to December 2014.

Capital regulator on Monday imposed a total of Rs 4 lakh on four entities for disclosure lapses in the matter of SRK Industries Ltd.

In four separate orders, a of Rs 1 lakh each has been levied by the regulator on Geeta Narayanan, Birendra Kumar Jain, Island Media and Entertainment Pvt Ltd and Maxgain Advisory Pvt Ltd.

Securities and Exchange Board of India (Sebi) had conducted an investigation in the matter of trading in SRK Industries' shares by its promoters for the period of March 2010 to December 2014.

It was found that the entities had failed to make complete disclosures required under PIT (prohibition of insider trading) norms for becoming the promoters of SRK, due to a scheme of arrangement approved by High Court of Bombay and High Court of Madras for the merger of TCL (Transcend Commerce Ltd) with SRK, said in similarly worded orders.

Further, it said that the disclosure was to be made in two days from the occurrence of the event.

With regard to change in shareholding of the entities, noted that SRK had made disclosure under the Listing Agreement to the exchange, though it was not in line with the disclosures to be under the PIT norms.

Also, the entities furnished the merger orders of TCL with SRK, passed by the High Courts, which also suggest that the change in shareholding of the promoters is not the act of commission but it is driven by the process of law, as per the orders.

Accordingly, Sebi took a lenient view and levied of Rs 1 lakh each on the entities.

Separately, the regulator has levied a fine of Rs 2 lakh on-- Kenrich Commodities Pvt Ltd (noticee) for violating SCRA (Securities Contracts Regulation Act) norms.

The regulator in its order said thatKenrich Commodities as a stock broker has grossly failed in performing its duties as a registered stock broker on various instances and, had failed to adhere to high standards of service to its clients.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, September 01 2020. 00:17 IST
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