Sebi slaps Rs 5 lakh fine on Natraj Financial and Services

Market regulator Sebi has slapped a penalty of Rs 500000 on Natraj Financial and Services for alleged delay in making disclosures regarding its shares.Securities and Exchange Board of India (Sebi) said that Natraj had failed to make disclosures within the timeline stipulated under the norms for the years 1998-2002.In an order dated March 25, the regulator said it is imposing "a penalty of Rs five00000 on Natraj Financial and Services Limited ..for its failure to make disclosure under the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations".As per the norms, every listed company has to, within 30 days from the fiscal year ending March 31, as well as the record date of the company "for the purposes of declaration of dividend, make yearly disclosures" to its stock exchange.Among others, these disclosures include any changes in respect of the holdings by promoters having control over the company as on March 31.Sebi had observed the non-compliances by Natraj Financial and Services while examining the public offer for acquisition of 20% of its stake by certain entities, including Balaji Bullions and Commodities.However, in its order the regulator noted that "it is difficult to quantify any gain or unfair advantage accrued to the noticee (Natraj) as a result of noticee's default".Besides, it said that no material was available to assess the "disproportionate gain or unfair advantage and amount of loss caused to an investor or group of investors as a result of default of the noticee".