SEBI disposes case against Larsen & Toubro

Regulator SEBI has disposed a case related to disclosure lapses by engineering major Larsen and Toubro (Land T) in a matter involving its financial services arm. Land T Finance Holdings (LTFH), which is promoted by Larsen and Toubro, offers a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, according to a SEBI order dated January 31. The order comes following a probe conducted by SEBI into the irregularity in share trading of LTFH and into the possible violation of norms for the period from March 10 to March 14, 2014 by Larsen and Toubro. During examination, it was observed that the shareholding of Larsen and Toubro in LTFH reduced from 81.50% for the quarter ending December 2013 to 76.61% for the quarter ending March 2014, due to sale of over 8.320000000 shares by the engineering major through offer for sale (OFS) to the public on March 14, 2014. Following the sale of shares, Larsen and Toubro was required to disclose the change in its shareholding to LTFH within the two working days under regulation 13(3) of PIT (Prohibition of Insider Trading) Regulations, 1992. However, it had allegedly failed to do so. Citing submission of Larsen and Toubro, Sebi said the engineering major had disclosed the change in its shareholding to LTFH and stock exchanges under regulation 13 (4A) of PIT Regulation, 1992 within two days from the date of sale of shares. The regulator added that the non-disclosure under Regulations 13(3) is merely technical in nature as Larsen and Toubro had filed disclosure under specific provisions of Regulations 13(4A). Regulation 13(3) mandates disclosure by any person who holds more than 5% shares for voting rights in any listed company, while as per Regulation 13(4A) disclosure is required to be made by any person who is promoter or part of promoter group.