As per SEBI norms any person who holds more than 5% shares for voting rights in a company has to disclose the number of shares held and change in shareholding. The disclosures have to be made even if such change results in stake falling below 5%
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a total penalty of Rs3 lakh on three entities for failing to make disclosures regarding change in their shareholding in Innovative Tech Pack (ITPL), reports PTI.
In three separate orders, SEBI slapped Rs1 lakh fine each on Sanjeev Reddy Chilumala, Ratna Ketineni and Kanaka Durga Ketineni for failing to make disclosures as required under the norms.
“...hereby impose a monetary penalty of Rs1 lakh...on the noticee (Chilumala),” SEBI said.
Similar worded orders were also passed against Ratna Ketineni and Kanaka Durga Ketineni.
As per SEBI norms any person who holds more than 5% shares for voting rights in a company has to disclose the number of shares held and change in shareholding. The disclosures have to be made even if such change results in stake falling below 5%.
It was alleged that all the three entities had reduced their respective stakes in ITPL between April-July, 2010 but did not make the required disclosures of change in their shareholding.
SEBI found that that Chilumala was holding 6.91% stake in ITPL as on April 2010 which got reduced to 2.21% in June 2010.
Similarly, the shareholding of Ratna Ketineni reduced to 2.92% in July 2010 from 9.68% in April 2010, while that of Kanaka Durga Ketineni declined to 4.18% in June from 6.8% stake held in April.
However, SEBI in its orders said that the available records did not indicate the amount of disproportionate gain or unfair advantage made by the three entities.
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Sebi has a double face, and the original one is the ugliest one.Its ridiculous that sebi is not taking action against a number of fake companies/promotors and Motilal Oswal kind of Frauds.They play safe by naming some dummy companies and at the background they go hand in gloves with the violators. Can SEBI take genuine action against Resurgere mines, Subhash Sharma, and Motilal Oswal like promoters. No.They have never taken investors seriously neither will.