Sebi fines 7 entities in disclosures case

Capital markets regulator Securities and Exchange Board of India (Sebi) on Tuesday slapped a fine of Rs 21.2500000 on seven entities for not making shareholding disclosures within the stipulated timeline. The Sebi has levied the fine on Walchand Kamdhenu Commercial Private Limited Chakor L Doshi, Champa Chakor Doshi, Sharayu Daftary, Walchand Chiranika Trading Private Limited Walchand Great Achievers Private Limited and Walchand Nagar Industries Limited According to the Sebi, these entities had acquired 3,050 shares constituting 1.53% stake of Bombay Cycle and Motor Agency Limited in May 2010 through bulk deal. However, there was no public announcement made for the acquisition by them as required under the norms. “I find that the said acquisition did cross the quantitative limit of 0.5% of the number of equity shares of the company listed on the exchange, which amounted to a bulk transaction,” Sebi General Manager D Sura Reddy said. He said, “As bulk deal transactions/acquisitions are not exempt from the obligation of making an open offer, the noticees were required to make a public announcement upon acquiring the said shares.” Imposing a penalty of Rs 21.2500000, Mr Reddy said, “I find that the noticees by not making public announcement on acquiring shares of Bombay Cycle and Motor Agency, have not only failed to comply with the provisions of SAST regulations, but have also deprived the shareholders of exit opportunity at the relevant time which has to be viewed seriously.” — PTI