INSUBCONTINENT EXCLUSIVE:
Markets regulator Sebi Friday imposed a total fine of Rs 7 lakh on three entities for failing to disclose the change in their shareholding
Sebi fined Seabird Retails Pvt Ltd and Seabird Distributors Pvt Ltd Rs 3 lakh each, while it imposed a penalty of Rs 1 lakh on Economy
Suppliers Pvt Ltd for violating PIT (Prohibition of Insider Trading) and SAST (Substantial Acquisition of Shares and Takeover) Regulations
In an order, the regulator observed that during the period from March 2012 to August 2014, the shareholding of entities crossed the
threshold of 5 per cent on several occasions
Also, on a number of instances the change in their stake was more than 2 per cent
Under PIT and SAST provisions, an entity which holds more than 5 per cent shares in any listed company is under obligation to make
requisite disclosures to the company and exchanges in two working days
Besides, if there is a change of more than 2 per cent in the shareholding of an entity already having over 5 per cent stake in the firm, it
is required to make disclosures to the exchanges and the company in two working days
However, the entities failed to do so, the Securities and Exchange Board of India (Sebi) said
"The noticees (Economy Suppliers, Seabird Retails, Seabird Distributors) have not made the requisite disclosures till date and (Seabird
Retails, Distributors) have committed repeated defaults," Sebi said
Accordingly, the regulator imposed penalties on the three entities.
