Latest News | Sebi Fines 4 Entities for Disclosure Lapses in SRK Industries Case

New Delhi, Aug 31 (PTI) Capital markets regulator Sebi on Monday imposed a total fine of Rs 4 lakh on four entities for disclosure lapses in the matter of SRK Industries Ltd.

In four separate orders, a fine of Rs 1 lakh each has been levied by the regulator on Geeta Narayanan, Birendra Kumar Jain, Island Media and Entertainment Pvt Ltd and Maxgain Advisory Pvt Ltd.

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Securities and Exchange Board of India (Sebi) had conducted an investigation in the matter of trading in SRK Industries' shares by its promoters for the period of March 2010  to December 2014.

It was found that the entities had failed to make complete disclosures required under PIT (prohibition of insider trading) norms for becoming the promoters of SRK, due to a scheme of arrangement approved by High Court of Bombay and High Court of Madras for the merger of TCL (Transcend Commerce Ltd) with SRK, Sebi said in similarly worded orders.

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Further, it said that the disclosure was to be made in two days from the occurrence of the event.

With regard to change in shareholding of the entities, Sebi noted that SRK had made disclosure under the Listing Agreement to the exchange, though it was not in line with the disclosures to be under the PIT norms.

Also, the entities furnished the merger orders of TCL with SRK, passed by the High Courts, which also suggest that the change in shareholding of the promoters is not the act of commission but it is driven by the process of law, as per the orders.

Accordingly, Sebi took a lenient view and levied fine of Rs 1 lakh each on the entities.

Separately, the regulator has levied a fine of Rs 2 lakh on-- Kenrich Commodities Pvt Ltd (noticee) for violating SCRA (Securities Contracts Regulation Act) norms.

The regulator in its order said that Kenrich Commodities as a stock broker has grossly failed in performing its duties as a registered stock broker on various instances and, had failed to adhere to high standards of service to its clients.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)