SEBI imposes Rs 6.8 lakh penalty on Skanda Aerospace

Markets regulator SEBI today levied a fine of Rs 6.8000000 on Skanda Aerospace for disclosure norm lapses. "The noticee (Skanda Aerospace) had failed to make disclosures within the stipulated time under... the SAST Regulations to the company (Astra Microwaves Products), BSE and the NSE in respect of change of more than 2% in its shareholding in the company during the period January – May 2014," Sebi said in an order. The regulator upon suspicion of violation of the SAST (Substantial Acquisition of Shares and Takeovers) Regulations had conducted an investigation into the shares of Astra Microwaves Products. According to the order, Skanda Aerospace had disposed of over 1700000 shares of Astra Microwaves Products from January to May 6, 2014, and over 2700000 on May 13 and 14, 2014. Following the selling of shares, Skanda Aerospace was required to make relevant disclosures regarding the shareholding to the stock exchanges as well as Astra Microwaves Products within the stipulated time period under SAST Regulations. Skanda Aerospace had submitted to Sebi that disclosure under the PIT (Prohibition of Insider Trading) Regulations were made during the stipulated time itself and that the instance of non-disclosure under SAST Regulations was an inadvertent mistake and was not made with any mala fide intention to mislead, suppress any information or deceive the public or the authorities. However, the regulator noted that the disclosure requirements under PIT Regulations and SAST Regulations are independent of each other and the disclosure made under PIT Regulations does not absolve Skanda Aerospace from making disclosure required under the SAST Regulations. "The failure of noticee in making disclosures to the target company and exchanges under... the SAST Regulations is a fit case for imposition of monetary penalty on the noticee," the Securities and Exchange Board of India (Sebi) said.