New Delhi: Markets regulator Sebi on Tuesday imposed a total penalty of Rs 14 lakh on three entities for disclosure lapses and failure to make an open offer with respect to Genus Prime Infra Ltd (GPIL). The entities had violated Substantial Acquisition of Shares and Takeovers (SAST) norms, according to an order.

The watchdog has slapped fines on Vivekshil Dealers Pvt Ltd, now known as Hi Print Electromack Pvt Ltd, Kailash Industries Ltd and Genus Paper & Boards Ltd.

The entities became promoters of GPIL by buying the controlling stake through a share purchase agreement and an open offer in October 2010.

Being promoters, Vivekshil Dealers and Kailash Industries were required to make disclosures regarding the number and percentage of shares or voting rights held by them or with persons acting in concert in that company within 21 days from the end of financial year 2010-11. However, they filed the requisite disclosures with a delay of over six years on July 4, 2017, the order said.

Under SAST norms, no acquirer, together with persons acting in concert with him who holds 25 per cent or more of the shares or voting rights in a target company can buy more than 5 per cent of the shareholding of the company within any financial year unless the acquirer makes a public announcement of an open offer for acquiring shares.

"It is evident from the admitted facts of the case that the Noticee-1 acting in concert with Noticee-2 and 3 was holding more than 25 per cent of voting rights of GPIL and purchased 7,05,800 shares constituting 5.01 per cent of GPIL during the period August 22,2013 to September 23,2013 itself triggering the requirement to make public announcement as stipulated under... SAST Regulations, 2011 which was admittedly not made by the noticees," Sebi noted.

Vivekshil Dealers Pvt Ltd is noticee 1 while Kailash Industries Ltd and Genus Paper & Boards Ltd are noticees 2 and 3, respectively.

The regulator has imposed a penalty of Rs 10 lakh on the entities payable jointly and severally, and Rs 1 lakh each on Vivekshil Dealers and Kailash Industries. Besides, a separate fine of Rs 2 lakh has been levied on Vivekshil Dealers and Kailash Industries, payable jointly and severally.