SEBI imposes Rs1.5 lakh fine on Highline Finance for violating share disclosure norms

SEBI imposes Rs1.500000 fine on Highline Finance for violating share disclosure norms The penalty has been imposed for failure to comply with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs1.500000 on Highline Finance for not making disclosures about its shareholding in Raj Packaging Industries (RPIL) within the prescribed time frame. In an order dated 26th July, SEBI has imposed “a penalty Rs1.500000 on Highline Finance and Investment Private Limited for the failure to comply with...the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations.” In its show-cause notice, SEBI had charged that Highline Finance, which held 9.14% stake in RPIL as on 30 June 2010, sold 84,000 shares by 14 September 2010 resulting in a change of 2.12% of holding of the company. It further said that from 15 September 2010 to 4 October 2010, Highline offloaded 84,857 shares, amounting to 2.13% stake, of RPIL. No disclosures in this regard were made to the company by Highline Finance in the prescribed format and within the specified timelines under SEBI’s Prohibition of Insider Trading regulations, the regulator said. According to SEBI’s norm, any person who holds more than 5% shares or voting rights in any listed company is required to disclose to the company in a prescribed format about the number of shares and voting rights held and change exceeding 2% of the total shareholding or voting rights in the company within two working days of such change.