Sebi slaps fine of Rs 15 lakh on promoters of SVC Resources

live bse live nse live Volume Todays L/H More × Regulator Sebi today slapped a fine of Rs 1500000 on three former promoters of SVC Resources for violating market norms regarding the transfer of shares. Gupta was the chairman and managing director of SVC Resources at the tim of violation, according to the Sebi order. Sebi found that promoter Powerhouse Fitness Limited (formerly known as Naaz Trading and Finance Limited exited from the company after transferring its shareholding to two other promoters, Akshat Gupta, Ankush Gupta without any payment through off market transaction in July 2009. Since, the transaction entered into by the three former promoters was an off-market transaction, it has to be in conformity with the provisions relating to spot delivery contract under the Securities and Contract Regulation Rules (SCRA), the regulator noted. To qualify as a spot delivery contract, actual delivery or transfer of shares and the payment should be on the same day as date of contract or the next day. However, payment and transfer of shares have not taken place as per the time limit required for spot delivery contract as defined in SCRA hence violative of SCRA regulations, Sebi said and imposed fine of 500000 each on the the three former promoters.