Sebi fines entities in non-disclosure cases

Markets regulator Sebi has slapped a penalty of Rs 600000 each on two individuals -- Arun Dagaria and Chirag Shah -- for not making disclosure regarding change in shareholdings due to pledging of shares.A Sebi probe found that both the entities had pledged their entire shareholding in Splash Media and Infra Limited (SMIL) to Suvidha Securities (SSPL) and the pledge was invoked by SSPL.Consequently, there was a change in the shareholding of the two entities but they did not make disclosures for the same.Arun Dagaria and Chirag Shah were holding 6.55% and 6.03% stake in SMIL respectively.As per the regulator, both the individuals have violated the Prohibition of Insider Trading (PIT) norms.According to Securities and Exchange Board of India (Sebi) norms, any person who holds more than 5% shares or voting rights in any listed company shall disclose to the company the number of shares or voting rights held.The probe found that Sharma had acquired 9.81% stake in 2012 in the company for which he failed to make timely disclosures.The disclosure was made with a delay of more than seven months thereby violating the regulator's norms.The notice (Sharma) has violated the provisions related to PIT (Prohibition of Insider Trading) norm and SAST (Substantial Acquisition of shares) Regulations, Sebi said.