Sebi slaps Rs 30 lakh fine on two entities over disclosure lapses

Capital markets regulator Sebi has imposed a total fine of Rs 3000000 on two entities for disclosure lapses in Sterling Green woods Limited case. A fine of Rs 2500000 has been levied on -- Anurag Agarwal and Paksh Developers -- payable jointly or severally. In addition, Rs 3.500000 has been imposed on Agarwal and Rs 1.500000 on Paksh Developers.Securities and Exchange Board of India (Sebi) had conducted an investigation with respect to trading in the scrip of Sterling Green Woods Limited (SGWL) for April to July, 2009.It was found that Agarwal had failed to make the requisite disclosures with respect to the acquisition of the shares of SGWL on two occasions -- August 2005 and July 2006 -- thereby violating SAST( Substantial Acquisition of Shares and Takeovers ) norms.Further, it was revealed that another 200000 shares were purchased by Paksh Developers in September 2007 and Agarwal was its person acting in concert.After this acquisition, the holding of Paksh and Agarwal rose to 16.41% in SGWL, the regulator noted.As per the order, Agarwal had himself admitted that the purchase and sell orders were placed by him on behalf of Paksh.Upon crossing the 15% barrier it was necessary that Paksh and Agarwal make an open offer under takeover norms.However, they failed to comply with open offer obligations as required under the SAST norms, Sebi said in its order passed on Friday.But, no disclosures were made to the exchange in respect of the acquisition, Sebi noted.Also, Agarwal failed to comply with provisions of the Prohibition of Insider Trading (PIT) norms.