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Sebi slaps Rs 10-lakh fine on Pal & Paul Builders

Market regulator said that the company neglected its duty of making disclosures since 1998 and the same continued till 2011

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Press Trust of India Mumbai
Last Updated : Jan 29 2014 | 1:47 PM IST
Capital market regulator Sebi has imposed a penalty of Rs 10 lakh on Pal & Paul Builders for alleged delay in making yearly disclosures to stock exchanges for a period of 14 years.

In an order issued Tuesday, Securities and Exchange Board of India (Sebi) said that Pal & Paul Builders had "utterly neglected its duty" of making the disclosures since 1998 and the same continued till 2011.

Noting that the firm had demonstrated a "casual and unbecoming attitude" in fulfilling statutory obligations, Sebi has imposed "a penalty of Rs ten lakh on the noticee viz., Pal & Paul Builders Ltd".

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As per Sebi norms, a listed company has to make yearly disclosures about its shareholding pattern to the relevant stock exchanges within 30 days from the financial year ending March 31.

"...The regulations require the making of disclosures so that investing public is not deprived of any vital information," Sebi said.

The firm said it was a small delisted company as of now and the alleged delay in submissions of disclosures had not resulted in any loss or harm to the public at large.

Sebi said that from the material available on record, "any quantifiable gain or unfair advantage accrued to the firm or the extent of loss suffered by the investors as a result of the defaults cannot be computed".

"It is observed that the violation is repetitive in nature...The same had continued for 14 years, i.e., every year since 1998 to 2011..., it added.

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First Published: Jan 29 2014 | 1:36 PM IST

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