Sebi imposes Rs 2 lakh fine on Zoom Mercantile

Market watchdog Sebi has slapped a fine of Rs 200000 on Zoom Mercantile and Finance Limited for allegedly failing to make timely disclosure regarding its shareholding details in S R Industries Limited In an order dated July 25, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 200000... on the noticee (Zoom Mercantile) which will be commensurate with the violations committed by it."The case relates to a 2011 matter. The regulator, in its show cause notice, had alleged that Zoom Mercantile failed to comply with the necessary disclosure requirements under Sebi's Prohibition of Insider Trading (PIT) regulations while trading in the shares of S R Industries.Sebi observed that Zoom Mercantile, which held 6.5700000 shares, amounting to 5.23% stake of the company in the quarter ending December 2010, declined to 1.5700000 shares or 1.25% holding in the firm as on March 2011.Between March 15 and 17, 2011, Zoom Mercantile offloaded 2.9000000 shares of S R Industries due to which its stake in the company fell below five% of the paid up capital of the firm. This was required to be informed via disclosures."It is an admitted fact that the noticee had not made the disclosure as required and hence there was no dissemination of information to the company," Sebi said."By virtue of the failure on the part of the noticee to make the necessary disclosure, the fact remains that the shareholders/investors were deprived of the information," it added.