SEBI slapped a fine of Rs2 lakh on Minal Industries for the delay in notifying the stock exchanges about its proposal for declaration of bonus shares and Rs1 lakh fine for failing to disseminate price sensitive information on a continuous and immediate basis
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a total penalty of Rs2 lakh on Minal Industries for alleged violations of the insider trading norms regarding its proposed issue of bonus shares during the year 2010, reports PTI.
As per the order, SEBI slapped a fine of Rs2 lakh on Minal Industries for the delay in notifying the stock exchanges about its proposal for declaration of bonus shares.
SEBI imposed another Rs1 lakh fine on the company for its failure to “disseminate price sensitive information on a continuous and immediate basis”, as required under the norms.
The regulator said it is imposing a “consolidated penalty of Rs2 lakh on Minal Industries Ltd” as per the provisions.
SEBI said that the agenda for meeting of the company’s board to discuss the bonus issue of shares was circulated along with notice to all the directors on 1 July 2010.
However, it was only on 6 July 2010 that the company informed BSE that a meeting of board of directors would be held on 9 July 2010 to consider bonus issue of equity shares.
As per the norms, a company is required to give notice simultaneously to the stock exchanges in case the proposal for declaration of bonus is communicated to its board of directors as part of the agenda papers.
Further, the rules also mandate that all the listed companies have to disseminate price sensitive information on a continuous and immediate basis.
“Considering the facts and circumstances of the case and the evidence made available on record as discussed... it can be concluded that the noticee (Minal Industries) has not complied with the provisions of Prohibition of Insider Trading regulations.” SEBI said.
SEBI said allegations of breach of various regulations by Dinesh Shyamsing Saini could not be established and therefore he is been absolved of the charges
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed off a case against an individual for his alleged involvement in irregularities on part of Bank of Rajasthan’s (BoR) former promoters, reports PTI.
SEBI said allegations of breach of various regulations by Dinesh Shyamsing Saini "do not stand established" and therefore he is been absolved of the charges.
Saini had served as director of five companies -- 21st Century Entertainment, Ahmednagar Investments, Cyber Info Zeeboomba.com, EDC Securities and Giriganga Investment -- alleged to be promoter group companies of BoR.
SEBI had alleged that incorrect disclosures were made by the promoters of BoR and their persons acting in concert (PACs) between June 2007 to December 2009.
However, in its order issued yesterday, SEBI said Saini was not the director of the companies during the period for which the probe was conducted by the regulator.
"...transactions by the five companies were made upto March 2009 and the noticee was appointed director of the company on 19 December 2009 i.e., much before his appointment as a director of the five companies," SEBI said in its order issued yesterday.
A probe by SEBI had found that BoR's then promoters, led by Pravin Kumar Tayal, along with some companies that were connected to him and his relatives, by way of their continuous disclosure publicly announced that their stake had come down from 44.18% at the end of three months period ended June 2007 to 28.6% as on quarter ending December 2009.
However, in reality, the holding of the promoters increased with the active collusion of front entities.
Shareholding of promoters of BoR with PACs had increased from 46.8% in June 2007 to 63.15% in December 2009.
BoR was later acquired by ICICI Bank.
SEBI found that shares of Empower Industries surged from Rs81 to Rs113 during 18 trading days with the total trading volume at 2.17 lakh shares and Kothari had allegedly been party to the circular movement and aided and abetted EIIL promoter-director Devang Master in manipulating the shares
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a penalty of Rs2 lakh on an individual for his alleged role in fraudulent trade in shares of Empower Industries, reports PTI.
In its order, SEBI said it is imposing “a penalty of Rs2 lakh on Nilesh Kothari in terms of the provisions... of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations”.
The matter relates to a probe conducted by SEBI in the shares of Empower Industries India (EIIL) during 16th February and 11 March 2005.
In the investigation, SEBI found that the company’s share surged from Rs81 to Rs113 during 18 trading days and the total trading volume stood at 2.17 lakh shares.
Kothari had allegedly been party to the circular movement and had had aided and abetted EIIL promoter-director Devang Master in manipulating the shares of the company.
SEBI noted that Kothari along with Devang had “carried out transactions in the market that led to a rise in the volume of the scrip and thereby induced the gullible investors”.
“...it does not appear to be a mere coincidence that the company made false announcements that facilitated in creating a general interest in the scrip and helped Devang and the noticee in carrying out their nefarious designs,” SEBI said.