Market regulator Sebi today slapped a fine of Rs 4 lakh on one Urvashi Ashok Kadakia for allegedly failing to make disclosures regarding her change in shareholding in Ashok Alco-Chem within the required time.
The regulator, in its order, has imposed "a penalty of Rs 4 lakh...(under relevant section of Sebi Act)... For violation ...Of PIT (Prohibition of Insider) Regulations on Kadakia."
According to Sebi, Kadakia, who was holding 1.65 lakh shares, equivalent to 5.03 per cent stake, of the company in March 2005 quarter, sold/transferred 50,000 shares (1.53 per cent holding) on May 31, 2005 and another one lakh shares (3.5 per cent stake) on June 3, 2005 in off-market.
Kadakia had reduced her holding in Ashok Alco-Chem from 5.03 per cent to 0.45 per cent as a result of which she was under obligation to make required disclosure to the company under PIT Regulations, which she failed to do.
The disclosures were required to be made within four working days after the transaction.
"By not complying with regulatory obligation of making disclosure, noticee (Kadakia) had concealed the vital information which is detrimental to the interest of investors in securities market," the Securities and Exchange Board of India (Sebi) noted.
