New Delhi: The Securities and Exchange Board of India (Sebi) has imposed a total penalty of Rs1.02 crore on 11 present and former promoters of Vas Infrastructure Ltd (VIL) 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% of the share capital of VIL as on 31 March 2011. The company had allotted 25 lakh share warrants (detachable) on 30 April 2010 to six promoters and certain other non-promoter investors.
Subsequently on 6 April 2011, the six promoters acquired 6.25 lakh or 2.19% 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% to 56.04%.
As the collective shareholding of the entire promoter group increased to 56.04% and thereby exceeded the limit of 55% as prescribed under the substantial acquisition of shares and takeovers (SAST) 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, Sebi said in the order dated 29 December.
As the shareholding of the promoters crossed the threshold limit of 54%, 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% of the share capital of VIL, it required a disclosure within two 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 Rs1 crore on the promoters for failing to make public announcement, it has levied a penalty of Rs2 lakh on them for disclosure lapses.