Sebi slaps Rs 40-lakh fine on Raj Oil Mills promoters, shareholder

Market regulator Sebi has levied a total penalty of Rs 4000000 on three entities including two promoters of Raj Oil Mills for failure to make disclosures about change in their shareholding pattern... wherein he had statutory obligation to disclose to the company and to the stock exchanges".It had found in the case of Shahida Shaukat that she had done certain off market transactions in the company shares after which her shareholding had undergone changes. However, the promoter had failed to make disclosures to the company and the bourses regarding the same on as many as 3 instances in 2012.Similarly, Sicom had failed to comply with the disclosure norms after its shareholding had undergone changes subsequent to invocation of pledge on shares of the company by it on two occasions."...by not making the required disclosures, the noticee had deprived the investors of important information at the relevant time," Sebi said in the orders. "It is pertinent to mention here that our entire securities market stands on disclosure based regime and accurate and timely disclosures are fundamental in maintaining the integrity of the securities market," it added.