SEBI said disclosures were admittedly made by the Glaxo group with an aggregate delay of 60 days
Market regulator Securities and Exchange Board of India (SEBI), on Tuesday slapped a fine of Rs25 lakh on Glaxo Group Ltd, a promoter entity of drug maker Glaxo SmithKline Pharmaceuticals, for failing to make timely disclosures about its aggregate shareholding to the company and the stock exchanges.
In its order, SEBI said, Glaxo Group neglected the duty of making timely disclosures to the stock exchanges the BSE and the NSE, on various occasions.
SEBI came across the violations by Glaxo Group while examining the draft letter of offer filed by Glaxo SmithKline Pharmaceuticals along with UK-based Glaxo SmithKline Plc and Glaxo Group, to acquire 24.33% stake in the India-listed group entity.
As on quarter ending September 2014, Glaxo Group held 35.99% stake in Glaxo SmithKline Pharmaceuticals as the largest promoter shareholder.
Penalties, totalling to Rs25 lakh which needs to be paid within 45 days, have been imposed by the capital market regulator for violating various provisions of SEBI's Takeover Regulations.
Under these norms, a promoter of a listed company has to, disclose, together with persons acting in concert with him, their aggregate shareholding and voting rights as on 31st March, in the firm, within a prescribed time period, to the relevant stock exchanges as well as the company.
SEBI found that Glaxo Group, as a promoter group entity, was under an obligation to disclose the aggregate shareholdings to the BSE and NSE as well as to Glaxo SmithKline Pharmaceuticals India for the year 2007.
However, the said disclosures were admittedly made by the entity with an aggregate delay of 60 days.
The market watchdog also noted that Glaxo Group was required to disclose its shareholdings for the year 2012 and 2013, but made the same with an aggregate delay of 158 days.
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