Capital market regulator has imposed a penalty of Rs 2 lakh on Mahesh Agricultural Implement and Steel Forgings Ltd's promoter for not disclosing his stake in the company for fiscal 2011-12 within the stipulated time.
In a recent order, the Securities and Exchange Board of India (Sebi) said that Harish Gangaram Agarwal as a promoter of a listed company "had a responsibility to comply with the disclosure requirements in accordance with their spirit, intention and purpose".
Accordingly, the regulator said it is imposing "a penalty of Rs two lakh on the noticee, Harish Gangaram Agarwal".
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However in the same order, Sebi has "abated" the adjudication proceedings against another company promoter, Gangaram Agarwal on account of his death.
As per norms, promoters of listed companies have to together with persons acting in concert, disclose their aggregate shareholding and voting rights in the firm as on March 31 to the stock exchanges within seven working days from the end of each financial year.
"Non-compliance/ delayed compliance with disclosure requirements by a listed company and/ or its promoters undermines the regulatory objectives and jeopardises the achievement of the underlying policy goals," Sebi said.
Sebi had come across the violations upon examination of a letter of offer made by certain entities to 26 per cent stake of Mahesh Agricultural Implement and Steel Forgings.
The shares of the company are listed at BSE and the Calcutta Stock Exchange.
