Market regulator Sebi has slapped a fine of Rs 13 lakh on Madhukar Chimanlal Seth for alleged failure to make timely disclosures about his acquisition of shares in Fact Enterprise.
The case relates to a Sebi probe into the alleged irregularities in the shares of Fact Enterprise and other possible violations of regulatory norms.
According to Securities and Exchange Board of India (Sebi) norms, any person who holds more than 5 per cent shares or voting rights in any listed company shall disclose to the company the number of shares or voting rights held.
A Sebi probe found that the noticee (Madhukar Chimanlal Seth) had acquired more than five per cent of the shares of the company in the quarter ended March 2008 due to acquisition of 2,74,673 shares.
He further acquired 2.25 lakh shares. So, at the end of the quarter ended September 2008, his total shareholding in the company stood at 4,99,673 shares, or 9.9 per cent.
According to Sebi, the allegation of failure to make disclosure to the company and the BSE stands established against the noticee.
The noticee has violated the provisions related to PIT (Prohibition of Insider Trading) norm and SAST (Substantial Acquisition of shares) Regulations, Sebi said.
"I note that the noticee has failed to make the relevant disclosures under SAST Regulations on one occasion, and of PIT Regulations on two occasions," Sebi's Adjudicating Officer Anita Kenkare said in her order dated August 31.
