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Sebi Wednesday slapped a total fine of Rs 82 lakh on 11 entities including promoters of Vertex Spinning for violating securities norms by carrying out off-market transfer of shares of the firm without payment of consideration.
The market watchdog also fined a promoter for not disclosing the change in the shareholding of Vertex Spinning Ltd (VSL) to the exchanges within the stipulated time.
In an order Sebi said, it had conducted an investigation regarding alleged violations by the entities from April to September, 2010.
The regulator found that promoters of VSL had transferred 70 lakh shares in off-market to Chetan Dogra group of entities from April to May 2010 and received only Rs 13 lakh from Chetan Dogra and related entities as against a total consideration of Rs 1.25 crore as per the agreements entered into by them.
Sebi said an off-market deal i.e outside the stock exchange mechanism, against no consideration except the receipt of Rs 13 lakh is in contravention of SCRA (Securities and Contracts (Regulation) Act).
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Besides, the regulator found that promoter Mithilesh Sharma upon receipt of 75,76,935 shares had failed to disclose the change in shareholding to BSE which increased from 4.83 per cent to 8.63 per cent within the stipulated time.
The act was in violation of SAST (Substantial Acquisition of Shares and Takeovers), Securities and Exchange Board of India, said.
Accordingly, Sebi imposed a fine of Rs 10 lakh each on Chetan Dogra, Chetan Dogra HUF, Daffodil Tradex Pvt Ltd, Subah Multimedia, Shraddha Entertainiment, Tulip Expotrade Pvt Ltd and Rs 5 lakh each on promoters of VSL, Green Cottage & Resorts, Zoom Colonizers, Phenomenal Craft, Yellow Consultants.
Moreover a fine of Rs 2 lakh was imposed on Mithilesh Sharma.
Disclaimer: No Business Standard Journalist was involved in creation of this content
