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Sebi imposes Rs 8 lakh fine on Butterfly Commotrade

Press Trust of India  |  New Delhi 

Markets regulator today slapped a penalty of Rs 8 lakh on Butterfly Commotrade for disclosure lapses in the matter of Overseas.

The order has come following an examination by the Securities and Exchange Board of (Sebi) into the trading in the scrip of Overseas from January 1-31, 2014.

According to the order, the as percentage of issued capital of Overseas reduced during January 2014 as compared to previous month due to release of the same by one non-promoter Pradip Petrofils to Butterfly Commotrade.

Since Butterfly Commotrade's shareholding in Pradip Overseas crossed 5 per cent following the of the shares, it was required to make disclosures under SAST (Substantial of and Takeovers) Regulations.

The disclosures regarding the change in shareholding had to be made by Butterfly Commotrade to the stock exchanges as well as Pradip Overseas within two working days of the of However, Butterfly Commotrade failed to make the required disclosures.

"The violation of aforesaid non disclosures occurred during January 2014 and as per records no disclosures were made by the noticee (Butterfly Commotrade) despite the requirement of making the same within two working days," said.

There is a delay of around four years in making the disclosures and the violation continues till date, it added.

Accordingly, has imposed a penalty of Rs 8 lakh on Butterfly Commotrade for the violation.

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

First Published: Wed, January 10 2018. 19:05 IST