Sebi slaps Rs 5 lakh fine on 18 entities in Era Infra case
Market watchdog Sebi has imposed a penalty of Rs five lakh on 18 entities for alleged failure to submit disclosures about changes in their shareholding pattern in Era Infra Engineering to the company and stock exchanges.
August 22, 2013 / 11:46 IST
Market watchdog Sebi has imposed a penalty of Rs five lakh on 18 entities for alleged failure to submit disclosures about changes in their shareholding pattern in Era Infra Engineering to the company and stock exchanges.
The Securities and Exchange Board of India (Sebi) has found that the 18 entities had increased their shareholding in Era Infra Engineering but failed to make disclosures, as required under the norms.Also read: Sebi to streamline financial reporting for listed companiesIn its order dated August 20, Sebi said that the 18 entities "ought to have made the relevant disclosures to the company (Era Infra) and to the stock exchanges..."."However, by not making the disclosure, the said noticees have failed to comply with their statutory obligation," Sebi said in an order dated August 20.In view of the violation, the regulator said it is imposing "a monetary penalty of Rs 5 lakh...on the following persons/entities on a joint and several basis".These entities include Alok Electricals, Antique texfab, Arankari Risk Management Services, Balaji Texfab, Compact Texfab, Pushpadevi Coronation Builders & Engineers, Durga Fabricators and Engg and Florid Infrastructure.Pensive Agencies, Salasar Texfab, Shappers Buildmart, Vibhut Builders & Engg, Mahima Developers and Builders, Tanvi Fincap, Olive Vinimay, Rajesh Kumar Govil, Ram Kirti Govil and Sonal Narain are also among the entities.A Sebi probe into the dealings in shares of Era Infra observed that the shareholding of 26 entities in the firm had collectively increased from 7.06 percent to 10.45 percent between June 2009 and September 2009 quarters. Since the shareholding had crossed the threshold limit of 10 percent, these entities were required to make disclosures to the company and to the stock exchanges within two days from the date of acquiring the shares, which they failed to do. Sebi in its order has noted that eight out of the 26 entities had not held and do not hold any shares of Era Infra but found the rest of the 18 entities to have violated norms related to disclosures. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
