Markets regulator Sebi today imposed a penalty of Rs 6 lakh on 11 individuals for failing to make a public announcement of an open offer for acquiring shares of Shreenath Industrial Investment.
The individuals had collectively purchased 55,000 scrips representing 27.50 per cent of the share capital of Shreenath Industrial Investment Company Ltd (SIICL) on March 30, 2013, as per a Sebi order.
As the individuals had collectively acquired more than 25 per cent of share capital and had taken control of SIICL, they were required to make a public announcement of open offer under the SAST (Substantial Acquisition of Shares and Takeovers) regulations. However, they failed to do so.
Noting that the alleged violation of SAST regulations against the individuals "stands established", Sebi has imposed a penalty of Rs 6 lakh on them.
"The amount of the penalty shall be paid jointly and severally by the noticees (11 individuals)," the Securities and Exchange Board of India (Sebi) said in its order.
The individuals are Fateh Lal Shah, Jitendra Yadav, Alop Chatruvedi, Anil Tiwari, Anil Gagrani, Pushpendra Patel, Shivram Sharma, Govardhan Lal Prajapat, Arjun Geel, Rajesh Mantri and Puppy Chatruvedi.
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