SEBI slaps Rs1 lakh fine on Bilcare CMD

MDT/PTI 07 December 2012

SEBI said Bilcare CMD Bhandari bought 5.60 lakh shares or 17.6% stake, taking his stake to 22.43% in the company but failed to submit a mandatory report

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) said it has imposed a penalty of Rs1 lakh on Bilcare's CMD Mohan H Bhandari for failing to submit a mandatory report regarding his acquisition of company's shares.

SEBI slapped a fine of Rs1 lakh on Bilcare Chairman and Managing Director (CMD) Bhandari and said the penalty is "commensurate with the default committed by the Noticee (Bhandari)".

The regulator said it had carried a probe into the shares of Bilcare during 1 January -11 December 2003.

The investigation had revealed that Bhandari had acquired 5.60 lakh shares representing 17.6% stake. As a result of the acquisition, the shareholding of Bhandari increased to 22.43% on 5 September 2003 from 5.37% on 1 April 2003.

As per the norms, an acquirer is required to submit a report about the share acquisition to SEBI within 21 days of the transaction. Thereafter, the person is entitled to exercise 15% or more of the voting rights in the company.

However, Bhandari failed to submit the report, SEBI said.

The regulator said it also observed that Bhandari was eligible for exemption under the regulations as it was an inter-se transfer amongst promoters. But, he did not claim exemption, requiring him to submit the report, it added.

Comments

User

Vaibhav Dhoka

1 decade ago

SEBI is going to KILL the investor(SMALL) community with its actions which are anti INVESTOR.It has reduced investors entry into mutual fund and stock market with HARASSING regulations.They are Draconian in nature.When it comes to take action on INTERMEDIARIES it is the TIMIDEST authority.

Piyush I Shah

1 decade ago

If Decession of 2003 is taken in 2012 by SEBI, just imagine How Fast SEBI actually working in the direction of Investor/Aam Aadmi Interest.

Where as on other hand they come out with various 'Fatvas' like New KYC norms & what Not for common people to be imposed with Immidiate effect.

Surprisingly No action for various company's Price Rigging/Manuplation & companies/Brokers Not following various Norms as per listing & other Aggrements.!