SEBI imposes penalty of Rs50,000 on Frontier Leasing
MDT/PTI 28 August 2012

Frontier Leasing and Finance sold 2.86% stake in Subway Finance and Investment but did not disclose the information for over 2,808 days

 
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) imposed a penalty of Rs50,000 on Frontier Leasing and Finance Ltd (FLFL) for failing to make disclosures regarding change in its shareholding in another company within stipulated time, reports PTI.
 
The company's shareholding pattern changes on account of sale of shares on 31 March 2003.
 
As per regulatory norms, acquisition or sale of shares in excess of 2% of the company's overall stake requires an entity to make a disclosure to the stock exchanges within two days of sale.
 
In its order, SEBI alleged that Frontier Leasing and Finance along with other promoters were holding shares/voting rights in Subway Finance and Investment Company Ltd (SFICL) within the prescribed limits.
 
However, on 31 March 2003, the entity sold 7,000 shares/voting rights translating to 2.86% stake of Subway Finance and Investment Co to another promoter of the company as part of inter-se-transfer among promoters transactions.
 
FLFL was required to make disclosure regarding the sale and its aggregate shareholding in the company to the stock exchanges within two days of the sale. SEBI observed that FIFL made disclosure after a delay of 2,808 days.
 
Comments
Free Helpline
Legal Credit
Feedback