SEBI imposes Rs 18 lakh penalty on Metkore Alloys, 3 others

Markets regulator SEBI imposed a total penalty of Rs 1800000 on Metkore Alloys and Industries, its promoter Prashant Boorugu and two others for disclosure lapses. The other two are Cronimet Mercon Invest (an erstwhile promoter of Metkore) and Bhuma Infrastructure. Following an inspection of the scrip of Metkore, the Securities and Exchange Board of India (SEBI) had observed that the four entities had not complied with the disclosure norms as required under SAST (Substantial Acquisition of Shares and Takeovers) Regulations and PIT (Prohibition of Insider Trading) Regulations. "... correct and timely disclosures play an essential role in the proper functioning of the securities market and failure to do so results in depriving the investors from taking well informed investment decision," SEBI said in an order. The regulator added that by failing to make the necessary disclosures as required under SAST and PIT Regulations, the four entities are liable for monetary penalties. Accordingly, SEBI has imposed a fine of Rs 400000 each on Boorugu, Metkore and Bhuma and Rs 600000 on Cronimet.