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Sebi fines two individuals for violating disclosure norms

Last Updated: Thursday, July 25, 2013 - 20:23

Mumbai: Capital markets regulator Sebi has imposed a total penalty of Rs 1.50 lakh on two individuals in separate cases for alleged non-compliance with disclosure norms.

In one case related to erstwhile Satyam Computer Services, Sebi has slapped a fine of Rs 50,000 on Subash Chandran, who was a senior executive at the company, for not making necessary disclosures after his wife had sold shares of the company worth over Rs 5 lakh.

Sebi had found that Chandran's wife had sold 6,400 shares of Satyam, for Rs 6.16 lakh on August 28, 2012 but did not make the requisite disclosures, as required under the norms.

As per norms, any person who is a director or officer of a listed firm has to disclose change in his and his dependent's shareholding or voting rights to the company and the concerned stock exchanges, if there has been a change in such holdings which exceeds Rs 5 lakh in value.

The regulator in its order dated July 23 has concluded that Chandran had "indeed failed to adhere by the statutory requirements under the law warranting imposition of monetary penalty".

In a separate case, Sebi has imposed a penalty of Rs one lakh on Madanchand Prasanchand for not making disclosures when his shareholding in Raj Packaging Industries crossed a threshold limit prescribed under the norms.

Sebi's show cause notice had alleged that Prasanchand holding in the company had increased to 5.06 percent on September 5, 2012.

It further said that his shareholding had changed by more than 2 percent on three occasions.

As per norms, upon such increase/change in holdings, the noticee was was required to make the necessary disclosures to the concerned stock exchanges.


First Published: Thursday, July 25, 2013 - 20:23
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