Vas Infrastructure matter: Sebi slaps Rs 1.02 cr penalty on 11 entities

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Markets regulator Sebi has imposed a total penalty of Rs 1.02 crore on 11 present and former promoters of Vas Infrastructure for failing to make public announcement upon acquisition of shares of the firm.

The 11 current and erstwhile promoters are Jayesh V Valia (HUF), Raj J Valia, Madhav J Valia, Jayesh V Valia, Sangeeta J Valia, Vinodrai V Valia, Yashraj Containeurs, Precision Containeurs, Vasparr Shelter, Vasparr Trading and Pushpanjali Drums.

In an order, Sebi noted that the promoters were holding 67,31,154 shares constituting 53.85 per cent of the share capital of Vas Infrastructure Ltd (VIL) as on March 31, 2011. The company had allotted 25 lakh share warrants (detachable) on April 30, 2010 to six promoters and certain other non- promoter investors.

Subsequently on April 6, 2011, the six promoters acquired 6.25 lakh or 2.19 per cent equity shares of VIL upon conversion of their portion of warrants which resulted in increase in the shareholding of the entire promoter group in the company from 53.85 per cent to 56.04 per cent.

As the collective shareholding of the entire promoter group increased to 56.04 per cent and thereby exceeded the limit of 55 per cent as prescribed under the SAST (Substantial Acquisition of Shares and Takeovers) Regulations, the 11 promoters were required to make public announcement to acquire shares within 4 working days from the date of acquisition.

The promoters have failed to make public announcement as mandated by SAST Regulations, thereby violating it and hence, are liable for penalty, the Securities and Exchange Board of India (Sebi) said in the order dated December 29.

As the shareholding of the promoters crossed the threshold limit of 54 per cent, they were required to make a disclosure of the acquisition to VIL and the stock exchanges, where shares of the firm are listed, within two working days from the date of acquisition.

Since the acquisition was of more than 2 per cent of the share capital of VIL, it required a disclosure within 2 days of transaction from the promoters to VIL as well the stock exchanges.

However, no disclosures were made by the promoters, as per the order.

While Sebi has imposed a fine of Rs 1 crore on the promoters for failing to make public announcement, it has levied a penalty of Rs 2 lakh on them for disclosure lapses.