SEBI said Bilcare CMD Bhandari bought 5.60 lakh shares or 17.6% stake, taking his stake to 22.43% in the company but failed to submit a mandatory report
SEBI said evidence is insufficient to establish that Kothari had acquired 5% shares of Alka Securities
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed of the case against Mahesh Kothari, one of the promoters of Alka Securities Ltd (ASL), related to his alleged failure in making requisite disclosures about the his shareholding in the company, reports PTI.
As per regulations, a person has to disclose to the company and the concerned stock exchange about the sale of more than 2% equity. It is also necessary to show that before such a sale, acquisition of more than 5% of the shares was made by the same entity.
The regulator had alleged that Kothari sold 15 lakh shares of ASL on 25 March 2009 aggregating to 3% stake in the company and did not make requisite disclosures within two days of such a sale as required under regulations.
However, SEBI said it noted that Kothari had purchased 100 shares of ASL in November 1998 but this did not amount to 5% and that no other details of any acquisition by Kothari is available on records.
In its order, SEBI said evidence is insufficient to establish that Kothari had acquired 5% shares of ASL, and concluded the "alleged violations as per the Show Cause Notice (SCN) do not stand established against the Noticee (Kothari)".
SEBI said as per the notification, eligible securities brought into the demat account under thr RGESS would automatically be subject to lock-in during the first year, unless the new investor specifies otherwise
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has announced the framework for Rajiv Gandhi Equity Savings Scheme (RGESS), an Indian government initiative aimed at attracting small investors into the capital market, reports PTI.
"The objective of the scheme is to encourage flow of savings in the financial instruments and improve the depth of the domestic capital market," SEBI said in a circular.
Under the scheme, announced in the 2012-13 Union Budget, new investors can avail tax benefits who invest up to Rs50,000 in the stock market and whose gross total annual income is less than or equal to Rs10 lakh.
The scheme was notified by the Department of Revenue, Finance Ministry on 23rd November this year.
For transactions undertaken by investors through their Rajiv Gandhi Equity Savings Scheme (RGESS) designated demat account, depositories may seek necessary transactional details from stock exchanges for enforcing lock-in (period), among others.
"On receipt of such request from depositories, stock exchanges shall provide the details to depositories on an immediate basis. It shall also be ensured that a uniform file structure is used by stock exchanges and depositories for such intimation of transaction details," the circular said.
SEBI said as per the notification, eligible securities brought into the demat account would automatically be subject to lock-in during the first year, unless the new investor specifies otherwise.
In case there is any specification, the new retail investors shall submit a declaration indicating that such securities are not to be included within the above limit of investment.