Sebi imposes Rs 1 lakh fine Dhaval Janardan Nanavati in Organic Coatings case

Market regulator Sebi today slapped a fine of Rs 100000 on one Dhaval Janardan Nanavati for failing to make requisite disclosures about change in his shareholding in Organic Coatings The Securities and Exchange Board of India (Sebi) has imposed "a penalty of Rs 100000 under the provisions of ...the Sebi Act on noticee (Nanavati).Sebi, in its show cause notice, alleged that Nanavati was holding 7.5100000 shares, amounting to 9.79% stake, of OCL at the end of September 2012 and sold the entire stake on October 5, 2012 to. As a result, Nanavati holding in OCL came down to nil.However, Nanavati did not disclose the change in his holding to the company."... noticee had failed to disclose to the company the change in his shareholding and thereby had violated the relevant provisions of Prohibition of Insider Trading Regulations which warrants the imposition of monetary penalty," Sebi said in its order.According to Sebi's norm, any person who holds more than five% of the share capital of the company, then any change which exceeds two% of total shareholding, the person is required to disclose the same to the company within two working days.