Sebi fines 5 people with Rs 10 lakh for not making open offer
Mumbai: Sebi has imposed Rs 10 lakh penalty on five individuals for delay in making disclosures and open offer after acquiring more than 15 percent stake in Premier Capital Services Ltd (PCSL).
The regulator said that the penalty imposed on Sandeep Hissaria, Renu Hissaria, Shiv Tekriwal, Sharda Tekriwal and Sanjay Tekriwal has to be paid jointly by them.
"...The noticees acquired shares beyond the threshold limit of 15 percent and acquired control over the target company (PCSL). This is clear case of trigger of the open offer requirements," Sebi said in an order dated December 24.
"In the open offer the noticees were required to acquire at least 20 percent of the shareholding. By not complying with the requirements to make an open offer, the noticees have avoided all these obligations and its associated costs," the order said.
As per norms, any person who acquires shares that entitle him to more than 5 percent in a company needs to disclose at every stage his shareholding to the company and to the concerned stock exchanges within two days of transactions.
Further, the rules say that no person is entitled to exercise 15 percent or more of the voting rights in a company, unless a open offer is made to buy shares of the company in accordance with the norms.
According to the regulator, the five entities acting in concert with each other acquired nearly 3.24 lakh shares aggregating to 45.41 percent stake in PCSL through an off market transactions from the company's promoters in May, 2009.
Further, in June, 2009 the entities together sold their entire share holding of 45.41 percent in PCSL to Vertex Investments, Vastu Commodities and Yukti Investments.
Sebi has alleged that the five entities had delayed making the disclosures on the acquisition and sale of shares and also failed to make an open offer.