SEBI levies fines on Future Corporate Resources, Kishore Biyani, others

Sebi said that equity shares of Praxis aggregating to 30 lakh were allotted to FCRL on February 11, 2020, pursuant to exercise of the conversion option of 3,180 CCDs by FCRL, out of the 7,500 CCDs initially allotted to it.

After the conversion of 3,180 CCDs, FCRL’s shareholding in Praxis increased from 47.43 per cent in the quarter ending December 2019 to 53.13 per cent, an increase of 5.71 per cent as on February 11, 2020.

Sebi said as the increase in shareholding of FCRL in Praxis post-allotment is 5.71 per cent, which is more than 5 percentage, FCRL and others were required to make a public announcement of the open offer.

However, the entities failed to make a public announcement of an open offer in respect of the allotment of 30 lakh equity shares to FCRL on February 11, 2020.

In view of this, Sebi imposed a penalty of Rs 10 lakh on Future Corporate Resources Pvt.

It also levied a total fine of Rs 10 lakh on 14 entities including Kishore Biyani, Ashni Biyani, Avni Biyani Rakesh Biyani, Akar Estate and Finance Pvt Ltd and Surplus Finvest Pvt Ltd.