Capital market watchdog Sebi today imposed a total penalty of Rs 15 lakh on seven individuals for failing to comply with the disclosures norms with regard to transactions in shares of Adi Rasayan.
The Securities and Exchange Board of India has imposed a joint penalty of Rs 5 lakh on Jayprakash J Doshi and Bhavesh J Doshi. It has also Rs 5 lakh cumulative fine on Narendra C Solanki, Poonam N Solanki and Roopal H Kawa and another Rs 5 lakh joint penalty on Natwarlal K Kawa and Reena N Kawa.
The market regulator had observed that the promoters' holding Adi Rasayan had come down from 56.82 per cent in March 2012 to 11.97 per cent in December 2012 and that the promoter group had sold shares in off market transactions to certain entities during this period.
It was further found that the seven individuals had purchased the shares of the company but had failed to make disclosures to the target company and the stock exchanges.
"The Regulation seeks to achieve fair treatment by inter alia mandating disclosure of timely and adequate information to enable shareholders to make an informed decision and ensuring that there is a fair and informed market in the shares of companies affected by such change in control," Sebi said.
"Correct and timely disclosures are also an essential part of the proper functioning of the securities market and failure to do so results in preventing investors from taking well-informed decision," it added.
