Raj Investments had reduced its stake in Global Boards (now Metroglobal) by 11.87% in 2005 but failed to make the mandatory disclosures
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has imposed Rs4 lakh in penalty on Raj Investments, a former promoter firm of Global Boards (now Metroglobal), for violations of various disclosure norms, reports PTI.
Raj Investments had reduced its stake in the company by 11.87% in 2005 but failed to make the mandatory disclosures.
In its order dated 18th January, SEBI slapped a fine of Rs2 lakh on Raj Investments for not disclosing the reduction in its shareholding/voting rights in Global Boards to the company within four working days.
Besides, SEBI imposed another Rs2 lakh on the entity, as being a promoter it was required to disclose the number and percentage of shares held by it to Global Boards within 21 days from the closing of the financial year, as well as the record date of the company for the purposes of declaration of dividend.
“...hereby impose a consolidated monetary penalty of Rs4 lakh on the noticee, namely Raj Investments, for violation of Regulation...” SEBI said.
A probe by SEBI had found that Raj Investments had reduced its shareholding in Global Boards from 2.30 crore shares, representing 30.87% stake as on quarter ended March 2005, to 1.42 crore amounting to 19% stake as on quarter ended September 2005.
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