SEBI levied a fine of Rs28 lakh on Mafatlal Finance and its two promoters for delay in compliance with its disclosure norms
Market regulator Securities Exchange Board of India (SEBI) has imposed a penalty of Rs28 lakh on Mafatlal Finance Company and its two promoters on failure to disclose information within stipulated time.
In three separate orders, SEBI asked Mafatlal Finance Company to pay a fine of Rs8 lakh, and its two promoters, Mafatlal Industries and Ensen Holdings (now known as PIL Chemicals to pay Rs10 lakh each.
SEBI said the company and its two promoters failed to disclose their holdings in timely manner between 1998 and 2007.
Source: www.sebi.gov.in
In its reply, Mafatlal Finance said, “The aforesaid delay has occurred on account of our erroneous presumption and understanding of the requirements of SAST regulation believing it to be necessary if and only when there has been a change in the promoter holding either by acquisition of new shares or the sale out of their present holdings. It has not received communication from the Stock Exchanges regarding its non submission in the earlier years.”
“Its shares have continued to remain suspended from the year 2000 onwards and hence no trading entry or exit opportunities were/are available to the shareholders. No pecuniary gain or loss was hence possible due to the delayed disclosures owing to the suspension of trading of the company’s shares. The said suspension in fact continues till date. Further no prejudice is caused to anybody due to the aforesaid delay in disclosures,” the company said.
As per SEBI order, the two promoters were required to make the yearly disclosure to Mafatlal Finance within 21 days from the financial year ending 31st March in respect of their holdings, among others, which they had failed to do.
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