 "Sebi imposes Rs 2.5 lakh fine on Sunway Finance' promoters")
The regulator in its order dated October 31, has imposed a penalty of Rs 2 lakh on Kawaljit Singh Chawla, Priti Kaur Chawla, Kiran Ajit Chawla and Jagjit Singh Chawla- HUF under relevant section of Sebi SAST ((Substantial Acquisition of Shares and Takeovers) regulations, "which may be paid jointly and severally."
Also, the Securities and Exchange Board of India (Sebi) has slapped a fine of Rs 50,000 on Kawaljit Singh Chawla.
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During the year 1997, out of the total issued and subscribed shares of 2.45 lakh, promoters including four individuals were holding 1.52 lakh shares (62.10%) of the share capital/voting rights of SFICL.
Sebi, in its show cause notice, alleged that Kawaljit Singh, Priti Kaur, Kiran Ajit, acting in concert, acquired a total of 23,600 shares (9.63%) of SFCIL by way of inter-se-transfer between promoters on September 30, 2000.
Further on March 21, 2011, Kawaljit Singh and Jagjit Singh, acting in concert, acquired by way of inter-se-transfer between promoters and in off market deals, a further 12,900 shares of SFICL (5.26%).
Therefore, it was alleged that Kiran Ajit was person acting in concert with other promoters, including Kawaljit Singh, Preeti Kaur and Jagjit Singh.
Their shareholding /voting rights in SFICL were between 15% and 75% and the additional acquisition shares of SFCIL by these entities on various occasions exceeded five% of the share capital of the company.
These persons went on acquiring shares of SFCIL without making any public announcements thus violating SAST norms, the regulator said.
Besides, Sebi said that Kawaljit Singh had acquired 12,000 shares (4.90%) of the company on March 31, 2003. He was required to make disclosures regarding this purchase and its aggregate shareholding in the company to the stock exchanges within two days of the transaction, which he failed to do, Sebi added.