Sebi slaps Rs 7.50 lakh fine on Rotomac over non-disclosures

Market regulator Sebi has imposed a penalty of Rs 7.5000000 on Rotomac Global for failing to make requisite disclosures regarding its dealings in shares of Flawless Diamond (India) Limited In an order dated April 16, Securities and Exchange Board of India (Sebi) has slapped "a penalty of Rs 7,50,000 on Rotomac Global Private Limited " for failing to make disclosures about its acquisition and disposal of Flawless Diamond shares.It said that following an alert regarding huge off-market transfer at the country's two depositories NSDL and CDSL, it was observed that significant quantity of shares of Flawless Diamond had been transferred from promoter/non-promoter related entities to Rotomac on October 30, 2009 and October 31, 2009.Sebi investigation revealed that Rotomac had acquired 4000000 shares (24% stake) from promoter/non-promoter entities of Flawless Diamond -- Sethia Gems, Manmohan Gems, Abhishek Jain and Jalak Jain.As per the regulations, as Rotomac had crossed the threshold limit of 5%, it was required to make disclosures to the company and the concerned stock exchange within two days of the receipt of acquisition of shares.Further the probe found that Rotomac had failed to make disclosures when it transferred back the shares of Flawless Diamond to the promoter/non promoter entities.Rotomac Global had submitted that it had entered into a pledge agreement with the promoter/non-promoter entities for 4000000 shares of Flawless Diamond.However, the regulator ruled that Rotomac Global's submission that the shares were pledged was "not legally tenable".