Sebi imposes Rs 76 lakh fine on Garware Polyester, 5 officials for disclosure lapses

Sebi imposes Rs 76 lakh fine on Garware Polyester, 5 officials for disclosure lapses

Markets regulator Sebi on Friday levied a total fine of Rs 76 lakh on Garware Polyester Ltd and its five officials for disclosure lapses with respect to change in shareholding of the firm.

The entities are facing fine for violating Prohibition of Insider Trading norms. The orders follow an investigation conducted between December 2011 and October 2014.

Sebi, in separate orders, noted that some of the promoter-directors of the firm had made disclosures with respect to changes in their shareholding to the stock exchanges with significant delay.

The acquisitions of shares by promoter-directors warranted disclosures to the firm and stock exchanges, as per market norms, since the value of the shares exceeded Rs 5 lakh, but they failed to do so within the prescribed time limit.

“Timely disclosures of the details of the shareholding of the promoter-director of the company acquiring substantial stake in the company is of significant importance from the point of view of the investors, as such information received by them in a time bound manner would facilitate them in taking an informed investment decision and the requirements also enable the regulators to monitor such acquisitions,” Sebi said in similarly worded orders.

Sebi also noted that the promoter-directors had made disclosures to the firm, but the firm filed the disclosures with the stock exchange with a significant delay.

The promoter-directors — Sonia Garware, Sheela S Garware, Shashikant B Garware, Sarita Garware and Monika Rajiv Garware Modi — are facing penalty in the range of Rs 1 lakh to Rs 11 lakh, while the firm is required to pay a fine of Rs 38 lakh.

In another order, Sebi imposed a fine of Rs 10 lakh on an individual for his role in manipulation of global depository receipts (GDR) issued by Farmax India Ltd.

Farmax issued 4.25 million GDRs amounting to USD 59.92 million on June 29, 2010, and further issued 0.85 million GDRs amounting to USD 11.98 million on August 14, 2010.

Sebi found that the individual — Sanjay Agarwal — was a party to a fraudulent scheme and facilitated fraud related to the GDR issue of Farmax, thereby violating market norms.

Source link


Please enter your comment!
Please enter your name here