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Sebi imposes Rs 7 lakh fine on three entities for disclosure lapses

Press Trust of India  |  New Delhi 

Markets regulator Sebi Friday imposed a total fine of Rs 7 lakh on three entities for failing to disclose the change in their shareholding in

Sebi fined and Rs 3 lakh each, while it imposed a penalty of Rs 1 lakh on for violating PIT (Prohibition of Insider Trading) and SAST (Substantial Acquisition of Shares and Takeover) Regulations.

In an order, the regulator observed that during the period from March 2012 to August 2014, the shareholding of entities crossed the threshold of 5 per cent on several occasions. Also, on a number of instances the change in their stake was more than 2 per cent.

Under PIT and SAST provisions, an entity which holds more than 5 per cent shares in any listed company is under obligation to make requisite disclosures to the company and exchanges in two working days.

Besides, if there is a change of more than 2 per cent in the shareholding of an entity already having over 5 per cent stake in the firm, it is required to make disclosures to the exchanges and the company in two working days.

However, the entities failed to do so, the (Sebi) said.

"The noticees (Economy Suppliers, Seabird Retails, Seabird Distributors) have not made the requisite disclosures till date and (Seabird Retails, Distributors) have committed repeated defaults," Sebi said.

Accordingly, the regulator imposed penalties on the three entities.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, October 12 2018. 22:40 IST