New Delhi: Markets regulator Sebi has imposed a fine of Rs 30 lakh on two promoters of Aadi Industries for failing to disclose the change in their shareholding in the firm.
Rushabh Jitendra Shah and Minesh Devendra Shah were promoter directors of the firm at the time of violation, as per Securities and Exchange Board of India (Sebi) order. The regulator conducted an investigation from January 2013 to December 2014 regarding the transactions carried out by them.
During the probe, Sebi observed that Minesh executed off-market transactions and acquired more than 5 per cent of share capital of the company during each of the quarter period with effect from January 2012. Fine on 7 entities Sebi imposed a total penalty of Rs 36 lakh on seven entities for indulging in manipulative and fraudulent trade practices in illiquid stock options of BSE.
The Securities and Exchange Board of India (Sebi) conducted an investigation into the trading activity in illiquid stock options on BSE from April 2014 to September 2015 after observing large-scale reversal of trades in the bourse’s stock options segment.
During the probe, Sebi observed that a total of 2.91 lakh trades, comprising more than 80 pc of all the trades executed in stock options of the exchange, were non-genuine and the firms were among the entities that had indulged in executing non-genuine trades.
Rs 79 lakh fine on MD, 6 directors of Ranklin Solutions In another case. Sebi has imposed a total penalty of Rs 79 lakh on the managing director and six directors of Ranklin Solutions for disclosure lapses and violation of insider trading norms.
The regulator during its investigation between February 2010 and January 2011 found that the MD of the firm, MJVVD Prakash, failed to make requisite disclosures under Takeover norms and did not make an open offer after change in his holding in the company.
Under the Substantial Acquisition of Shares and Takeovers (SAST) norms, an entity has to make an open offer in case its shareholding goes beyond a certain threshold. Prakash held 14.6 pc of the share capital of the company and on June 29, 2010 he acquired 35,000 shares which increased his shareholding to 15.29 pc, Sebi noted in its order dated Apr 30.
Besides, Sebi in a separate order noted that Prakash along with six directors also failed to frame code of conduct for prevention of insider trading, as required under insider trading norms. Consequently, a total fine of Rs 49 lakh was imposed on Prakash while the six directors — P Venkateswara Rao, M Jyotsana Lakshmi, JVV Raghava Kumar, M Satish Kumar, K S Chakravarthi and K Vijaya Rama Raju — were fined Rs 5 lakh each.