Sebi drops non-disclosure charges against Raj Packaging

Market regulator Sebi has dropped a case against Raj Packaging Industries Limited , charged with failing to make requisite disclosures about change in its shareholding pattern to stock exchanges.According to Sebi's show cause notice, RPIL had failed to make disclosures with respect to the change in shareholding of Highline Finance and Investment.In its order dated July 29, Securities and Exchange Board of India (Sebi) observed that alleged violation of disclosure norms by RPIL "could not be established".As per the show cause notice, Highline Finance which held 9.14% stake in RPIL had intimated it regarding selling of 2.24% stake of the company in 2010.The company was required to make disclosure received in the prescribed format from Highline Finance to the bourses within two working days of its receipt, as per the norms.In its submissions to Sebi, RPIL said it had not received the disclosure of change in shareholding from Highline Finance in the prescribed format and therefore was not obligated to make the said disclosure to the stock exchanges, among others.The market regulator agreed with the submissions of RPIL and thereby noted that "the allegation against the noticee (RPIL) with respect to its non disclosure to the stock exchange is difficult to establish".Sebi has already slapped a penalty of Rs 1.500000 on Highline Finance for not making disclosures about its shareholding in RPIL within the prescribed time frame.