Sebi settles charges vs Park Continental

Market regulator Sebi has closed the case against Park Continental after the company agreed to pay Rs 1.5000000 to settle charges of failing to make disclosures about its shareholding in another entity. The case related to Park Continental’s shareholding in the listed company Peacock Industries. “This consent order disposes of the said proceedings pending against the noticee (Park Continental) under Securities and Exchange Board of India Act...,” Sebi said in an order dated September 28. Park Continental has paid Rs 1.5000000 towards settlement charges. The entity has significant stake in Peacock Industries. A Sebi probe revealed that on two occasions Park Continental failed to make disclosures on increasing stake in the company. Peacock Industries’ shareholding,which stood at 9.34% prior to June 30,2009,rose to 10.34%. Later,the shareholding was hiked to 14.29%. However,on both instances,Park Continental failed to make necessary disclosures to the stock exchanges. While,adjudication proceedings were in progress,Park Continental proposed a settlement in July 2011 under Sebi’s consent order mechanism and thereafter revised the offer of settlement in April 2012. As per the revised terms of settlement,Park Continental proposed to pay Rs 1.5000000 to Sebi. After considering the facts and circumstances of the matter,Sebi’s High Powered Advisory Committee (HPAC) recommended that the proceedings against Park Continental may be settled on payment of that amount. These recommendations were accepted by Sebi and the same was communicated to Park Continental in September this year. “This consent order is passed on September 28,2012 and shall come into force with immediate effect,” Sebi said. The market regulator also noted that enforcement actions,including commencing or reopening of the proceedings,could be initiated if any representation made by Park Continental is found to be untrue.