SEBI slaps Rs6.75 lakh fine on Concurrent India, its two promoters

SEBI has imposed a penalty of Rs50,000 on Concurrent (India) Infrastructure Ltd, (now known as Shriniwas Power & Infrastructure Ltd) and Rs3 lakh on K Nirupama and Rs3.25 lakh on K Nirmala, both promoters of the company

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has slapped a total fine of Rs6.75 lakh on erstwhile Concurrent (India) Infrastructure Ltd (CIIL) and its two promoters for allegedly not complying with the disclosure norms related to the company's shareholding details, reports PTI.
In three separate orders dated 30th November, SEBI has imposed a penalty of Rs50,000 on Concurrent (India) Infrastructure Ltd, (now known as Shriniwas Power & Infrastructure Ltd) and Rs3 lakh on K Nirupama and Rs3.25 lakh on K Nirmala, both promoters of the company.
"impose a penalty of Rs50,000 on the noticee, Concurrent (India) Infrastructure Ltd, (now known as Shriniwas Power & Infrastructure Ltd...impose a penalty of Rs3 lakh on the noticee, K Nirupama... impose a penalty of Rs3.25 lakh on the noticee, K Nirmala...," the regulator said in three separate orders.
The regulator said the company filed incorrect and misleading information with the BSE related to the shareholding of two promoters -- K Nirmala and K Nirupama for quarter ended March 2011.
It was alleged that the two promoters had pledged certain shares of CIIL and their respective shareholding had undergone changes consequent upon the invocation of the pledge.
SEBI said it was revealed that the two entities had not not made necessary disclosures regarding the creation of pledge and invocation/ revocation of pledge of shares within seven working days as per SEBI's regulations.
Regarding the shareholding of the Nirmala, SEBI said out of 7.36 lakh CIIL shares pledged by the entity, two lakh CIIL shares were invoked on 4 February 2011.
Upon invocation, SEBI said Nirmala's stake declined to 26.35 lakh shares or 6.15%. However, the shareholding pattern showed that Nirmala held 28.35 lakh scrips or 6.58% holding in the company.
Similarly, in case of Nirupama, a total of 17 lakh CIIL shares were invoked on 17 March 2011 and 18 March 2011, subsequent to which her holding fell to 12.43 lakh shares or 2.98%.
However, the shareholding pattern for the quarter ending March 2011 had disclosed 17 lakh shares to be encumbered and her shareholding to be 29.43 lakh shares or 6.84% stake which is incorrect.
"The shareholding pattern indicates a higher shareholding of the said promoter entities (K Nirmala and K Nirupama) than the actual holding which was incorrect and therefore misleading to the general investors," SEBI said.


Government to finalise Rs15,000 crore fund infusion in PSBs this week

Top three banks which require capital are Indian Overseas Bank, Central Bank of India and the Bank of Maharashtra

New Delhi: The Union government said it will decide about Rs15,000 crore capital infusion in the public sector banks (PSBs) to shore up their capital base this week, reports PTI.


"This week there will be some announcement about the allocation (to various banks)," Department of Financial Services Secretary DK Mittal said.


"Allocation of the funding will be decided and rest I think the process still has to go through," he said.


Asked if the capital infusion would be done through rights issue, he said it has to be first approved by respective boards and then the Finance Ministry will take a view on that.


"If there is rights issue, there is scope for anybody to go in...LIC is not a short-term investor," he said to a query if LIC will be asked to subscribe to the rights issue.


"May be LIC will also make money by selling some of the equities when they come to the market," he added.


He said the government has made budget provision of Rs15,000 crore for recapitalisation of banks in the current fiscal.


The top three banks which require capital are Indian Overseas Bank, Central Bank of India and the Bank of Maharashtra. State Bank of India would also need capital, he said.


All but one Dena Bank have tier I capital of above 8% well above Basel norms.


Asked about holding company structure, Mittal said the Reserve Bank of India has given its feedback and the Finance Ministry is analysing it.


"RBI has broadly agreed on this... However, there is a need to look at regulatory platform because it would be such a large conglomerate (holding company) and how to be regulated.


What kind of capital adequacy it should have," he said.


"Broadly, they (RBI) said we support this view...the government is yet to take a view on (holding company structure for the public sector banks)," he said.


The 2012-13 Union Budget had proposed setting up of a financial holding company that would help raise resources to meet capital needs of state-owned banks. .


On the cash subsidy transfer scheme roll out from 1st January, Mittal said banking system is fully ready for the roll out across the identified districts.


"Banking system is fully geared up to meet this challenge. We have been working on this the last 10 months and I think banking system has done a great job, including private sector banks also, and we are fully ready," he said.


Meanwhile, Central Registry of Securitisation Asset Reconstruction & Security Interest of India (CERSAI) and Credit Information Bureau (India) Ltd (CIBIL) have signed an agreement to share information.


"This partnership between the two institutions has been conceived with a view to bringing synergy of information and operations by the lending institutions," he said.


This collaborative venture will bring considerable value to the industry and enhance their confidence in lending, he said.


The scope and coverage of the central registry will be further expanded to include a host of other activities and information that relate to the financial sector, he added.


As many as 296 banks, housing finance companies and financial institutions have so far registered themselves with CERSAI and are filing the details of the mortgages taken by them by deposit of title deeds. It has now a data base of more than 75 lakh records of equitable mortgages.


Banks can, before accepting any title deed for mortgage, make a search in the CERSAI record to ensure that there is no existing mortgage or loan against the property, and thus avoid any potential fraud or multiple financing.



nagesh kini

4 years ago

When the PSBs are doing well on the stock exchanges as the result of investor confidence, I feel it will better to open the new issue to small and/or domestic institutional share holders to the exclusion of FIIs, this will enable local infusion instead of the Government increasing its equity which it should decrease any way. It can divest some of it through this route too.

Thane Municipal Corp seals HDFC Bank ATM for 'non-payment' of property tax

According to TMC, the total dues on the premises where the ATM of HDFC Bank is located are Rs13.64 Lakh including Rs12.40 lakh as property tax

Thane: Thane Municipal Corporation (TMC) has sealed an HDFC Bank ATM in the city for alleged non-payment of property tax to the tune of Rs12.40 lakh, reports PTI.


A civic team led by Kopri Ward Officer sealed the HDFC Bank's ATM situated at Narayan Nivas Building near the railway station, a release said.


According to TMC, the total default due on the premises where the ATM is located is Rs13.64 Lakh including Rs12.40 lakh towards the property tax.


Meanwhile, HDFC Bank sources said that according to information available immediately the landlord has not paid the property tax, which has invited the civic action.


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