Capital market regulator Sebi has imposed a collective fine of Rs 10 lakh on Surana Industries Ltd (SIL) and its three directors for fraudulent activities related to preferential issue of shares.
The Securities and Exchange Board of India (Sebi) said SIL and its non-independent directors -- G R Surana, Dineshchand Surana and Krishna Udupa -- "shall jointly and severally pay the... Amount of penalty totalling Rs 10 lakh."
According to Sebi, SIL had not intimated the decision with regard to the preferential issue taken by the firm's board on January 18, 2010 within 15 minutes of the closure of the meeting as well as had delayed dissemination of price sensitive information relating to the issue to the bourses "on an urgent basis", as required under norms.
"The noticees, by their default have deprived the investors of important information at the relevant point of time," Sebi said in an order dated September 26.
Besides, Sebi observed that the company had withdrawn the proposed preferential allotment on two occasions "without justifiable reasons."
"... In making repeated corporate announcements regarding preferential allotments and thereafter deferring/dropping agenda items relating to such allotment proposals without justifiable reasons will definitely constitute fraud and is nothing but an artifice used by the noticees to make the open offer by the promoters unattractive," Sebi said.
Noting that a company acts through its directors and officers, Sebi said SIL directors are "expected to exercise utmost care, skill and diligence in all activities of the company."
Sebi had initiated a probe into the matter after it had received a complaint on June 25, 2012 against SIL in respect of preferential allotment of 77 lakh of its shares.
