SEBI imposed a penalty of Rs10 lakh on a shareholder of Raj Packaging for failing to disclose around 5% rise in his shareholding in the company
Market regulator Securities and Exchange Board of India (SEBI) fined Rs10 lakh penalty on one shareholder of Raj Packaging Industries Ltd (RPIL) for failing to disclose the increased in his stake in the company within the stipulated time.
SEBI in its investigation found irregularities in the trading of RPIL shares, and noticed that one Madanchand Prasanchand has acquired more than 5% shares of issued share capital of RPIL on two occasions.
The shareholder has not filed disclosure within two working days about the substantial increase in his shareholding in RPIL, thus violating the provisions of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
In its order SEBI said, the shareholder admitted about the delay in complying with the norms. SEBI also noted that he had had not made any submissions with respect to the change in his holding by more than 2% on two occasions.
Madanchand Prasanchand in his submission to SEBI said, “I have acquired 2.04 lakh shares of RPIL representing 5% of total paid up capital of the company from 1 January 2013 to 17 September 2013. For the period under consideration, due to ignorance of regulations, lack of knowledge and oversight, there was delay in filing the information under the SEBI SAST Regulations, 2011. The delay was totally unintentional and without any malafide intention. As soon as it came to my knowledge, I have filed the reports under Regulation 29(2) read along with Regulation 29(3) of Regulations to the stock exchange. Delay reporting has neither resulted in any gain to me.”
SEBI imposed a penalty of Rs10 lakh on Madanchand Prasanchand. SEBI said Prasanchand's stake in Raj Packaging increased to 15.78% from 13.59% and he should have disclosed the change to the company as required under the norms.
Raj Packaging closed Friday flat at Rs21.15 on BSE, while the 30-share Sensex too ended the day flat at 21,753.
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