Sebi imposes penalty of Rs 3 lakh on three entities
Mumbai: Market regulator Sebi on Tuesday imposed a total penalty of Rs 3 lakh on three entities for failing to make disclosures regarding change in their shareholding in Innovative Tech Pack Ltd (ITPL).
In three separate orders, Sebi slapped Rs one lakh fine each on Sanjeev Reddy Chilumala, Ratna Ketineni and Kanaka Durga Ketineni for failing to make disclosures as required under the norms.
"...Hereby impose a monetary penalty of Rs one lakh...On the noticee (Chilumala)," Sebi said.
Similar worded orders were also passed against Ratna Ketineni and Kanaka Durga Ketineni.
As per Sebi norms any person who holds more than 5 percent shares for voting rights in a company has to disclose the number of shares held and change in shareholding. The disclosures have to be made even if such change results in stake falling below 5 percent.
It was alleged that all the three entities had reduced their respective stakes in ITPL between April-July, 2010 but did not make the required disclosures of change in their shareholding.
Sebi found that that Chilumala was holding 6.91 percent stake in ITPL as on April, 2010 which got reduced to 2.21 percent in June 2010.
Similarly, the shareholding of Ratna Ketineni reduced to 2.92 percent in July 2010 from 9.68 percent in April 2010, while that of Kanaka Durga Ketineni declined to 4.18 percent in June from 6.8 percent stake held in April.
However, Sebi in its orders said that the available records did not indicate the amount of disproportionate gain or unfair advantage made by the three entities.