Sebi imposes penalty on Fact Enterprises MD Rajiv Kashyap for not complying with disclosure norms

Market regulator Sebi today imposed a penalty of Rs 1.7500000 on Fact Enterprises Managing Director Rajiv Rajaram Kashyap for allegedly not complying with the disclosure norms related to the company's shareholding details.Sebi (Securities and Exchange Board of India) said it imposed "a penalty of Rs 1.7500000...on the noticee (Kashyap) which will be commensurate with the violations committed by him."It was alleged that Kashyap, who held 24.88% stake in Fact Enterprises, transferred his 21.79% holding to various entities during July-September 2009.Post stake sale, Kashyap holding came down to 4.57% at the three months ended September 2009 and consequently was under an obligation to make disclosures.Sebi said that there was change in the shareholding of Kashyap by more than one% and also there was change in stake of him by more than two% in three instances.As per Sebi's regulations, any person who holds more than five% shares in any listed company needs to disclose to the stock exchange about any change in shareholding.It is applicable even if such change results in shareholding falling below five%."The noticee had not made the disclosure to the company and the exchange and hence there was no dissemination of information to the general investor."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 important information at the relevant point of time," Sebi said.