Mumbai: Market regulator SEBI has slapped a fine of Rs 2.5 lakh on SPS Share Brokers as the stock broker allegedly failed to disclose its shareholding details in Prudential Pharmaceuticals Ltd (PPL) within stipulated period.
In its order dated December 19, Securities and Exchange Board of India (SEBI) has imposed "a penalty of Rs 2.5 lakh on SPS Share Brokers."
The regulator said the stock broker had purchased six lakh shares of PPL on its own account and 2.75 lakh scrips of the company on behalf of its clients taking the total to 8.75 lakh shares or 16.98 percent of the total paid up capital of PPL in 2001.
However, the regulator said the stock broker did not comply with SEBI's guidelines regarding its share acquisition details PPL to the concerned stock exchanges within four working days.
As per SEBI's guidelines, any entity acquiring more than five percent shares in a company is required to disclose its shareholding in that company to the concerned stock exchanges within four working days.