Sebi Imposes Rs 5 lakh Fine on 4 Entities

Securities market regulator Sebi has imposed a total penalty of Rs. 5 lakhs on four entities including IFCI Factors, for disclosure lapses in the matter of Shiva Cement, reported PTI. The other three entities being Unicon Merchants, Akash Gupta, and Preeti Gupta, all Shiva Cement's promoters.

The four entities had violated SAST (Substantial Acquisition of Shares and Takeovers) Regulation for the transactions dated April 21, 2014, in the shares of Shiva Cement as per the Sebi's examinations.

Shiva Cement's shares, which were released on April 21, 2014, were pledged by the promoters. IFCI Factors was the counter-party to the transactions and had acquired the shares.

In its order dated January 5, Sebi said the promoters had pledged their shares with IFCI Factors and the same were released later which required them to make requisite disclosures. IFCI Factors was also required to make necessary disclosures.

However, the four entities by not making the necessary disclosures upon release of the pledge of shares of Shiva Cements have violated the provisions of SAST Regulation, Sebi noted.

For the violations, the Securities and Exchange Board of India (Sebi) has levied a fine of Rs 3 lakh on the promoters and Rs 2 lakh on IFCI Factors.