Sebi fines former promoter of Covidh technologies Rs 6 lakh for disclosure lapses

Markets regulator Sebi today imposed a fine of Rs 6 lakh on a former promoter of Covidh Technologies for disclosure lapses with regard to change in shareholding of the company.

In an order, Sebi said it has imposed a fine of Rs 6 lakh Obul Reddy Puppala who was director and promoter of the Covidh Technologies, previously known as Aptus Industries Ltd at the time of investigation.

The regulator had conducted an examination in the change of shareholding of Puppala from March to September in 2013.

Sebi found that during the investigation period, Puppala made seven share transactions in the scrip of the Covidh and as Puppala was holding more than 5 per cent shares in the company, he was required to make disclosures at every transaction to the exchange and the company within two working days under PIT (Prohibition of Insider Trading) as well as SAST (Substantial Acquisition of Shares and Takeovers) norms.

Though Puppala made relevant disclosures to the company, however he failed to make disclosures to the exchange, BSE and thereby violated PIT and SAST regulations, Sebi said.

In a separate order, Sebi today imposed penalty of Rs 5 lakh on six former promoters of Premier Synthetics Limited for failing to disclose inter-se transfer of shares of the company among the them to the stock exchange, BSE and hence it was violative of SAST (Substantial Acquisition of Shares and Takeovers) norms.