According to the order, the pledged shares as percentage of issued capital of Pradip 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 acquisition of the shares, it was required to make disclosures under SAST (Substantial Acquisition of Shares 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 acquisition of shares. 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," Sebi said.
There is a delay of around four years in making the disclosures and the violation continues till date, it added.
Accordingly, Sebi has imposed a penalty of Rs 8 lakh on Butterfly Commotrade for the violation.
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