Markets regulator Sebi has imposed a fine of Rs 8 lakh on nine former and current promoters of Emmsons International for violating takeover norms. Among the erstwhile and present promoters are Anil Monga, Rajesh Monga, Renu Monga, B B Gandhi, Manya Monga, Rashi Monga, Shivaz Monga, Poonam Monga and Jagroop Singh, according to an order dated June 27.
In August 2010, the nine promoters were allotted 8.50 lakh warrants, which were converted into equivalent number of equity shares in February 2012.
As a result of the conversion, the collective shareholding of the nine promoters along with that of other promoters and promoter group of Emmsons International increased from 22.59 lakh shares (43.88 per cent stake) to 31.09 lakh shares (51.83 per cent stake).
The collective shareholding of the nine promoters along with other members of the promoter group increased by 7.95 per cent vis-a-vis the total share capital of the company.
In terms of the SAST (Substantial Acquisition of Shares and Takeovers) Regulations, the nine promoters were under an obligation to make a public announcement of open offer on the second working day preceding the date of the conversion of the warrants. However, they made the public announcement for open offer with a delay of 85 days and violated the takeover norms.
For the violation, the Securities and Exchange Board of India (Sebi) has imposed a fine of Rs 3 lakh on the promoters.
Since the shareholding of the nine promoters along with members of the promoter group of the firm witnessed a change by 7.95 per cent as a result of the conversion of warrants to equity shares, the former were under an obligation to make the necessary disclosures to the stock exchange and the company within two working days, as required under the takeover norms.
The relevant disclosures were not made within the stipulated time, for which the regulator has levied a penalty of Rs 5 lakh on the nine promoters.
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