Sebi imposes Rs 2 lakh fine on Bartronics India's promoter

Market regulator Sebi has slapped a fine of Rs 200000 on Bartronics India's promoter A B Satyavas Reddy for allegedly violating disclosure norms.In its order, the Securities and Exchange Board of India (Sebi) has imposed "a penalty of Rs 200000 on A B Satyavas Reddy ... the penalty is commensurate with the default committed by him."The probe carried out by the regulator in the matter of Bartronics India during June 16-September 30, 2010 found that Reddy had transferred about 400000 shares of the company to one Raghu Daripalli on January 13, 2009 in off-market transaction as pledge at the request of Bistrolia Asia Inc towards short term loan of three months instead of funds.However, Bistrolia could not return the shares to Reddy and therefore, on April 20, 2009, the pledge transaction was made into sale and consideration for the same was decided at Rs 3.280000000.With regards to the pledge of shares of the company to Daripalli and subsequent invocation of pledge, Reddy was required to file disclosures."Bartronics India submitted that the noticee (Reddy) inadvertently missed to disclose the details of the pledge of shares to the company and hence, no disclosures were filed to the stock exchanges with regard to the said pledge," as per the order.The regulator said Reddy's shareholding in Bartronics India reduced to 11.76% from 13.14% after the transcation on April 20, 2009. The change in shareholding amounts to 1.38% of the then total number of shares of the company which stood at 28,977,456.The sale transaction exceeded 25,000 shares in volume, value of transaction was more than Rs 500000 and also the change in the shareholding exceeded one% of total shares of Bartronics India. Thus, Reddy was required to file disclosure to the company and the stock exchanges as per Sebi's norms."...noticee did not make the necessary disclosures as were required for the pledge transaction entered into by him and later invoked and also the change in the shareholding pattern and it is amply clear that he has failed to adhere by the statutory requirements under the law," it added.