SEBI imposes fine of ₹10 lakh on an individual for disclosure lapse

Markets regulator SEBI on Wednesday imposed a fine of ₹1000000 on an individual for disclosure lapses in the shares of Gujarat Arth. “There is no case for change in the penalty of ₹1000000 imposed earlier” through previous order, SEBI said in a fresh order. The Securities Appellate Tribunal (SAT) had set aside Sebi’s earlier order of February 2015 and directed the regulator to pass a fresh order in the case related to one Shivram Motial Meena. The Securities and Exchange Board of India (SEBI) had conducted an investigation from October 2003 to January 2004 for alleged violation of Takeover and Insider Trading provisions. In a fresh ruling, SEBI said during January 2004, Mr. Meena acquired 500000 shares of Gujarat Arth from another entity in off-market transaction after which his share holding increased to 9.91% in the firm. Under Takeover and Insider Trading norms, Mr. Meena was required to the disclose his increased shareholding to the exchanges and the company as his stake crossed the threshold of 5%. However, he failed to disclose it and thereby violated Takeover and Insider Trading regulations, SEBI said.