Sud bought about 1.51 lakh shares of the company taking her stake in SR Industries to 5.39% from 4.19% but did not inform SEBI as mandated
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has settled the case against one Meenakshi Sud after she made a payment of about Rs7.24 lakh for allegedly not making the requisite disclosures regarding her shareholding in SR Industries Ltd.
SEBI said that it is settling the matter against Sud, "without admitting or denying the guilt on the part of the Noticee (Sud) to the finding of fact or conclusion of law ".
The regulator had observed that while trading in the scrip of SR Industries through trading member LSE Securities, Sud purchased nearly 7.52 lakh shares amounting to 5.98% stake of the company and sold 24,726 shares representing 0.19% shareholding.
It was alleged that as on 8 April 2011, Sud had acquired about 1.51 lakh shares of the company due to which her stake in the company increased from 4.19% to 5.39%.
According to the norms, as her shareholding crossed 5%, she was required to make disclosures to the company and to the concerned stock exchange.
SEBI had alleged that Sud did not make the necessary disclosures.
While the adjudication proceedings were in progress, Sud made an application for consent order in June, this year.
Subsequently, she proposed settlement charges of about Rs7.24 lakh under SEBI's consent order mechanism.
A High Powered Advisory Committee (HPAC) considered the consent terms and recommended the case for settlement on payment of the said amount.
The recommendations of HPAC were also approved by the panel of Whole Time Members of SEBI.
The consent order regarding the case was passed on 3 December 2012.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
