Markets regulator Sebi today imposed a fine of Rs 11 lakh on eleven promoter entities of plywood manufacturer Archidply Industries for violating takeover regulations.
The promoter entities are Assam Timber Products, Vanraj Suppliers, Ravi Marketing Services, The Mysore Chipboards, Deen Dayal Daga, Shyam Daga, Rajiv Daga, Usha Daga, Sangeetha Bharadia, Shree Shyam Tea and Deen Dayal Daga HUF.
It was alleged that Assam Timber and Vanraj Suppliers, acting in concert and with other promoter group entities, had acquired shares of the firm between March and December 2009 through off market transactions instead of open market purchases, thereby violating SAST (Substantial Acquisition of Shares and Takeovers) Regulations.
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Between March and December 2009, Assam Timber and Vanraj Suppliers had acquired 5,46,150 shares of the firm, out of which 12,349 were purchased through off market transactions.
"I find that the noticees (promoter entities) acquired these shares through off market transactions and thereby allegedly violated provisions of the Takeover Regulations," Sebi Adjudicating Officer Prasad Jagadale said in an order.
As per the Securities and Exchange Board of India (Sebi) order, the monetary penalty of Rs 11 lakh can be recovered "jointly and severally from the promoters".
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