Sebi imposes Rs 8 lakh fine on four persons in Saianand Commercial case

live bse live nse live Volume Todays L/H More × Markets regulator Sebi imposed a total fine of Rs 800000 on four individuals including three former directors of Saianand Commercial for disclosure lapses. The former directors Naresh Shivlal Rupani, Utam Ravji Gada and Ashok Shivlal Rupani were fined for failing to disclose to the exchanges the board's recommendation of change in management. In the former directors' case, the regulator observed that the board of directors in its meeting held in July 2010 recommended change in management. However, no corporate announcement was made by the company to the exchanges regarding the board meeting and the recommendation of change in management, the Securities and Exchange Board of India (Sebi) said. "The recommendation of the board of director in regard to change in management of the company is a very vital information. "For this reason, it is essential that a corporate announcement is made by the company to the exchange. All directors at the relevant time are liable for the non-compliance and hence they are to be penalised under SCRA (Securities Contracts (Regulation) Act)", Sebi said. In the case of Shelar, he was holding 58,000 shares which was 6.04% of the total shareholding of the company in April 2010. Shelar transferred the entire 58,000 shares, which changed his shareholding to nil but no disclosure was made by him to the stock exchanges, which was in violation of PIT (Prohibition of Insider Trading) norms, the regulator said. Accordingly, a penalty of Rs 200000 was imposed on him by the regulator, besides a fine of Rs 200000 each on the three former directors.