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Sebi levies Rs 1 lakh fine on Valecha Engineering's promoter

Press Trust of India  |  New Delhi 

Markets regulator Sebi today imposed a penalty of Rs 1 lakh on Valecha Engineering's promoter Valecha Investment for disclosure lapses.

The regulator's had conducted an inspection of the shareholding of Valecha Investment Pvt Ltd in the scrip of (VEL) for the period from January 1 to July 8, 2015.

During the inspection period, Valecha Investment had sold a total of 8,34,356 shares of VEL through six separate transactions.

As Valecha Investment was one of the promoters and the change in its shareholding was more than 25,000 shares during each of the six transactions, it was under an obligation to make disclosures regarding the total number of shares or voting rights held to VEL, BSE and NSE under Regulation 13(4A) and 13(5) of PIT (Prohibition of Insider Trading) Regulations.

As per Regulation 13(4A), disclosure is required to be made by any person who is promoter or part of promoter group while 13(5) requires the disclosures to be made within two working days of the sale of shares.

Noting that Valecha Investment violated the provisions of Regulations 13(4A) and 13(5) of PIT Regulations, Sebi said in an order that the violation attracts the imposition of monetary penalty.

Accordingly, the (Sebi) has levied a fine of Rs 1 lakh on the promoter.

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

First Published: Mon, February 12 2018. 18:55 IST