Sebi on Friday levied fines totalling Rs 27 lakh on five entities for violating regulatory norms in the matter of Unitech Ltd. The regulator slapped a fine of Rs 10 lakh on Sanjay Bahadur, Rs 6 lakh on Rana Rajesh Gangahar, Rs 5 lakh on Ravi Aiyar, Rs 3 lakh each on Mayfair Capital Pvt Ltd and Ravinder Singhania.
The order came after a Sebi probe in the scrip of Unitech during the period October 2008 to March 2009. In the investigation, the regulator found that Ravinder, Ravi and Rana Rajesh being the designated directors/employees of Unitech have carried out the trades in the company.
They maintained that they have obtained pre-clearance for the trades that were carried out in the scrip of Unitech. However, they failed to maintain a copy of the same. Also, Bahadur had not sought pre-clearances for the trades he carried out in the shares of Unitech.
Being the designated employees of the company, they were required to comply with the provisions of pre-clearance of trades in terms of the model code of conduct rules framed by the company. However, they failed to follow that thereby violating the PIT (Prohibition of Insider Trading) rules.
The regulator also noted that Bahadur and Ravinder bought shares of the company and then sold the shares held by both of them. Subsequently, they were required to file the disclosures for change in holdings in the scrip to the company and the stock exchanges.
However, Bahadur and Ravinder failed to do that, thereby violating the PIT norms. During the investigation, it was also observed that Mayfair Capital Pvt Ltd (MCPL) shareholding was diluted by 2.94 per cent in the company because of the invocation of the pledge of shares by the lenders with whom the shares were pledged.
MCPL, Mayfair Investments Pvt Ltd and Prakausali are the promoter entities of Unitech. Thereafter, Unitech was informed to provide the details of disclosures received from Mayfair with respect to the pledge and invocation of pledges of shares of the company.
However, Unitech failed to reply and further Mayfair have neither filed a reply to the show cause notice (SCN) nor made submissions during the hearing. Thus, Unitech admitted the fact that Mayfair had failed to disclose the pledge and invocation of the pledge of shares and accordingly Sebi concluded that MCPL had violated SAST (Substantial Acquisition of Shares and Takeovers) rules.
Also, MIPL and Prakausali held more than 15 per cent of the share capital of Unitech and were amalgamated with MCPL. However, when asked by Mayfair, it failed to file any reply to the SCN and submissions during the hearing.
Thus, it is evident that Mayfair has failed to disclose the change in holdings of the share capital of Unitech to stock exchanges and accordingly, it violated the listing agreement under SAST norms. Meanwhile, in a separate order, the market watchdog imposed a fine of Rs 20 lakh on Quantum Global Securities Ltd for indulging in the misutilisation of client securities.In another order, Sebi slapped fines totalling Rs 19 lakh on two entities for violating regulatory norms in the matter of Indian Infotech & Software Ltd.