SEBI asks Mallya to respond on 8.41% stake sale in UBHL

SEBI asks Mallya to respond on 8.41% stake sale in UBHL
The problems seem to be not ending for UB Group's chairman Vijay Mallya. In a fresh row, the market regulator Securities and Exchange Board of India (Sebi) has raised question over the recent share sale in three of his companies and asked Mallya to give information on the same that led to a reduction of promoter holding in (United Breweries Holdings Ltd) UBHL from 51.5 per cent to 43.09 per cent.

Vijay Mallya has sold 8.41 per cent stake in UBHL from June to September amid profit booking when the stocks of the company were soaring up high. However, the Mallya has not informed the market regulator for the same.

As per SEBI guidelines, promoters have to disclose within two working days to the regulator and exchanges any change in shareholding pattern, if they are involved in buying or selling of shares.

Sources close to Indian stock markets Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) reveled that they have not received any such information. They also said that if UBHL promoter failed to produce satisfactory reply over the issue, the regulator might also issue a showcause notice to UBHL promoters.

However, UB Gropu's spokesman refused to comment on the development.

Story first published: Saturday, November 3, 2012, 9:30 [IST]
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