With regard to the pledge of shares of Bartronics India to Raghu Daripalli and subsequent invocation of pledge, the promoter AB Satyavas Reddy was required to file disclosures
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has slapped a fine of Rs2 lakh on Bartronics India's promoter AB Satyavas Reddy for allegedly violating disclosure norms, reports PTI.
In its order, SEBI has imposed “a penalty of Rs2 lakh on AB Satyavas Reddy... the penalty is commensurate with the default committed by him.”
The probe carried out by the regulator in the matter of Bartronics India during 16th June to 30 September 2010 found that Reddy had transferred about 4 lakh shares of the company to one Raghu Daripalli on 13 January 2009 in off-market transaction as pledge at the request of Bistrolia Asia Inc towards short term loan of three months instead of funds.
However, Bistrolia could not return the shares to Reddy and therefore, on 20 April 2009, the pledge transaction was made into sale and consideration for the same was decided at Rs3.28 crore.
With regards to the pledge of shares of the company to Daripalli and subsequent invocation of pledge, Reddy was required to file disclosures.
“Bartronics India submitted that the noticee (Reddy) inadvertently missed to disclose the details of the pledge of shares to the company and hence, no disclosures were filed to the stock exchanges with regard to the said pledge,” as per the order.
The regulator said Reddy's shareholding in Bartronics India reduced to 11.76% from 13.14% after the transaction on 20 April 2009. The change in shareholding amounts to 1.38% of the then total number of shares of the company which stood at 28,977,456.
The sale transaction exceeded 25,000 shares in volume, value of transaction was more than Rs5 lakh and also the change in the shareholding exceeded 1% of total shares of Bartronics India. Thus, Reddy was required to file disclosure to the company and the stock exchanges as per SEBI's norms.
“...noticee did not make the necessary disclosures as were required for the pledge transaction entered into by him and later invoked and also the change in the shareholding pattern and it is amply clear that he has failed to adhere by the statutory requirements under the law,” it added.
SEBI had alleged that Indiabulls Securities had modified the client codes without informing the exchange and issued contract notes to transferee clients
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed of inquiry proceedings against Indiabulls Securities after the entity made a payment of Rs5.10 lakh to settle charges alleging violations of certain provisions of broker norms, reports PTI.
“... it is hereby ordered that this consent order disposes of the aforesaid enquiry proceedings initiated against Indiabulls Securities Ltd,” SEBI said in an order dated 2 January 2013.
The case relates to SEBI probe into trading by Indiabulls Securities in 2008-09.
The regulator had alleged that Indiabulls Securities had modified the client codes without informing the exchange and issued contract notes to transferee clients.
The broker had also allegedly indulged in wrong margin reporting for both transferor and transferee. It failed to provide order book for the Futures and Options segment.
Based on its investigations, the regulator had initiated enquiry proceeding against Indiabulls Securities.
While, the proceedings were pending, the stock broker proposed a settlement under SEBI's consent order mechanism in April 2007.
In August 2012, Indiabulls Securities revised its consent terms and offered to pay Rs5.10 lakh to settle the case.
Thereafter, SEBI’s High Powered Advisory Committee on Consent (HPAC), after deliberations, recommended the case for settlement on the payment of the amount. This was also approved by SEBI, following which Indiabulls remitted an amount of Rs5.10 lakh on 26 November 2012.
SEBI noted that enforcement actions, including commencing or reopening of the proceedings, could be initiated if any representation made by the stock broker is found to be untrue.