INSUBCONTINENT EXCLUSIVE:
New Delhi: Markets regulator Sebi Friday levied a total penalty of Rs 15 lakh on Castex Technologies and Metalyst Forgings for disclosure
lapses regarding pledged shares.
According to the order, Metalyst Forgings Ltd was the promoter of Castex Technologies Ltd at the the time
of violation.
The penalty on the entities follows an investigation by the regulator regarding the number of shares pledged by Metalyst
Forgings from March 2015 to September 2015.
Pursuant to the probe, the regulator found that Metalyst Forgings, a promoter of Castex
Technologies, had pledged its scrips to various banks in the year 2015.
However, the information provided by depositories regarding the
number of pledged shares did not match with that provided by Metalyst Forgings, Sebi said.
The incorrect disclosures made by Metalyst
Forgings were violative of SAST (Substantial Acquisition of Shares and Takeovers) norms, the regulator said.
Similarly, Castex Technologies
failed to disclose the correct information regarding the number of shares pledged by Metalyst Forgings.
"Noticee 1 (Castex) has not made
correct disclosures, with respect to the shares pledged by its promoter i.e
Metalyst Forgings," the regulator said.
By doing so, Castex Technologies contravened listing agreements, the Securities and Exchange Board
of India (Sebi) said.
" filing of incorrect disclosure by the Noticees (Castex and Metalyst) have resulted in giving a wrong picture of the
shareholding of promoter entities to the market and thus misleading to the general investors," Sebi said.
Accordingly, a fine of Rs 5 lakh
was imposed on Castex Technologies and Rs 10 lakh on Metalyst Forgings.