Sebi fines 4 entities for disclosure lapses in SRK Industries case

It was found that the entities had failed to make complete disclosures required under PIT (prohibition of insider trading ) norms for becoming the promoters of SRK, due to a scheme of arrangement approved by High Court of Bombay and High Court of Madras for the merger of TCL ( Transcend Commerce Limited ) with SRK, Sebi said in similarly worded orders.Further, it said that the disclosure was to be made in two days from the occurrence of the event.With regard to change in shareholding of the entities, Sebi noted that SRK had made disclosure under the Listing Agreement to the exchange, though it was not in line with the disclosures to be under the PIT norms.Also, the entities furnished the merger orders of TCL with SRK, passed by the High Courts, which also suggest that the change in shareholding of the promoters is not the act of commission but it is driven by the process of law, as per the orders.Accordingly, Sebi took a lenient view and levied fine of Rs 100000 each on the entities.Separately, the regulator has levied a fine of Rs 200000 on-- Kenrich Commodities Private Limited (noticee) for violating SCRA (Securities Contracts Regulation Act) norms.The regulator in its order said that Kenrich Commodities as a stock broker has grossly failed in performing its duties as a registered stock broker on various instances and, had failed to adhere to high standards of service to its clients.