Disclosure norm violation: Sebi fines 3

Sebi in the orders dated October 31 said that considering the facts and circumstances of the case the penalty ” shall be commensurate with the violations committed by the noticee “.

Pursuant to receiving a complaint,Sebi initiated an probe in the scrip of Livingroom Lifestyle (now known as Chisel & Hammer (Mobel) Ltd) for the period February 11 to November 25,2010.

The regulator said Avishek Bose was the top client who contributed 9.95 per cent to the gross market buy. Bose had 8.27 stake in the Livingroom Lifestyle which were purchased from the two of the company’s promoters.

Sebi alleged that Bose transferred his stake to Gulistan Vanijya which subsequently gave them to JMD Telefilms Industries.

None of the three entities,however,made any disclosure regarding their shareholdings as required under the norms.

Sebi said failure on the part of the entities to make the necessary disclosures on time had deprived the investors of the important information at the ” relevant point of time”.

The regulator said it observed that the entities had ” concealed the vital information which was detrimental to the interest of investors in securities market “.

In an another order,the market regulator has slapped a Rs 1 lakh fine on Abhigam Consultants for failing to disclose the share acquisition in formations to the stock exchanges in the prescribed time period of four days.

The matter relates to acquisition of shares/voting rights of Transpek Finance Ltd by Abhigam Consultants in December last year.

“…impose a consolidated penalty of Rs 1 lakh…on the noticee (Abhigam Consultants)…penalty is commensurate with the violations committed by the noticee,” Sebi today said in its order.

Sebi said Abhigam Consultants on December 05,2011 acquired 5.59 lakh shares/voting rights amounting to 15.66 per cent stake in Transpek Finance through inter-se transfer of the shares on December 5,2011.

The regulator said the entity failed to inform the same to the stock exchanges within the prescribed period of four working days and informed the information only on January 31,2012 — a delay of 36 working days.

Sebi said it had granted an exemption to the company from making public offer on account of inter-se transfer of the shares among the qualifying persons.

In addition,as per Sebi’s regulation,the entity was required to intimate the stock exchange where the shares of the target company are listed,about the details of the proposed acquisition at least four working days prior to the purchase.

“However,it is observed that the noticee undisputedly failed to intimate the same within the prescribed period,and intimated only on January 31,2012 i.e. a delay of 44 working days,” Sebi said.