Market regulator Sebi has imposed a fine of Rs 1 lakh each on two senior executives of GHCL Ltd for allegedly indulging in fraudulent trading in the company's shares.
In two separate orders, the Securities and Exchange Board of India (Sebi) has slapped fine on GHCL Managing Director Ravi Shanker Jalan and its Executive Director (Finance) Raman Chopra for responsible for incorrect disclosures related to shareholding pattern to the stock exchanges.
A probe carried out by Sebi found that promoter entities of GHCL and the top officials colluded to disclose inflated shareholding to the exchanges.
It has subsequently been accepted by GHCL that the quarterly disclosures regarding the promoter holding were incorrect for eight quarters between March, 2007 to December 14, 2008.
"It was alleged that the noticee (Jalan and Chopra)had colluded with the promoter entities of GHCL and included shareholding of third parties with the shareholding of the promoter entities which resulted in falsely inflated shareholding of promoter entities in GHCL in the quarterly disclosures," Sebi said in a similar worded statement.
Sebi said disclosures were filed incorrectly for various quarters and the violation by the two entities can be considered as a repetitive in nature.
The regulator said shareholding pattern and names of promoters and others stakeholders is a very important criterion for the public to make their investment decisions.
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