Market watchdog Sebi today slapped a fine of Rs 20 lakh on First Century (India) Ltd for allegedly failing to disclose the change in its shareholding in Silicon Valley Infotech Ltd pursuant to sale of shares.
The regulator in its order, has imposed "a monetary penalty of 20,00,000/- on the noticee, namely Twenty First Century (India) Ltd, for violation of...The Sebi (Substantial Acquisition of Shares and Takeovers) Regulations."
According to the Securities and Exchange Board of India (Sebi), First Century (India) Ltd had failed to disclose the about the sale change in its shareholding in Silicon Valley Infotech Ltd (SVIL) pursuant to sale of shares between the quarters ending December 2002 and March 2003.
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First Century (India) Ltd, being a person acting in concert (PAC), with the promoters of SVIL had sold over two per cent share capital of SVIL without making the necessary disclosures.
They together had a consolidated holding of 17.72 per cent share capital of SVIL as on the quarter ending December 2002.
The obligation to make disclosure under Sebi's norm arises when an acquirer purchases or sells shares aggregating two per cent or more of the target company in case acquirer along with PAC, is holding between 15 and 55 per cent stake in the target company.
