Sebi levies Rs 7 lakh fine on 6 entities for disclosure lapses

Markets regulator Sebi today imposed a total penalty of Rs 7 lakh on six entities for violating disclosure norms with regard to transactions in the shares of Anshus Clothing.

Among the six entities, four -- Ravi Bhandari, Rekha Bhandari, Ravi Bhandari HUF and Lollipop Fashions -- are promoters of the firm. Samir Ghosh and Anand Kumar Dhanuka are other two.

The regulator had conducted an examination into the matter of Anshus Clothing Ltd (ACL) following which it found that the four promoters had transferred 25 lakh shares of the firm to Ghosh on November 27-28, 2013.

In an order, Sebi said that the transfer of shares by the promoters of ACL to Ghosh and further transfer of shares back by Ghosh to Ravi Bhandari was nothing but acquisition of shares for the purpose of disclosure requirements under the SAST Regulations and PIT Regulations.
 

The four promoters by not making the necessary disclosures have violated the provisions of SAST (Substantial Acquisition of Shares and Takeovers) Regulations and PIT (Prohibition of Insider Trading) Regulations, it added.

The regulator also said that Ravi Bhandari, by failing to make the necessary disclosures to ACL and the stock exchange upon creating encumbrance of shares pursuant to the agreements with two individuals -- Pragnesh Doshi and Chirag Shah, has violated SAST Regulations.

Ghosh had also transferred 10,00,000 shares of ACL to one Anand Kumar Dhanuka on the instructions of Ravi Bhandari.

By not making necessary disclosures under the SAST Regulations and the PIT Regulations upon acquisition and transfer of shares of ACL, Samir Ghosh and Anand Kumar Dhanuka have violated the provisions of SAST Regulations and PIT Regulations, Sebi said.

For the violations, while the Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 1 lakh each on Rekha Bhandari, Ravi Bhandari HUF, Lollipop Fashions, Samir Ghosh and Anand Kumar Dhanuka, it has levied a penalty of Rs 2 lakh on Ravi Bhandari.