Market regulator Securities and Exchange Board of India (Sebi) Tuesday imposed a penalty of Rs.25 lakh on Glaxo Group Ltd, the promoters of Glaxo Smithkline Pharmaceuticals (GSKPL), for failing to make timely disclosures about its aggregate shareholding to the latter and the stock exchanges.
Glaxo Group "had failed to make necessary disclosures, within the specified time period, of its aggregate shareholding to the stock exchanges and the target company i.e. GSKPL," Sebi Adjudicating Officer D.Sura Reddy said in an order here.
Glaxo Group holds 35.99 percent stake in Glaxo Smithkline as the largest promoter shareholder.
Sebi found violations by the Glaxo Group in the draft letter of offer filed by GSKPL along with British firm Glaxo Smithkline plc and Glaxo Group, to acquire 24.33 percent stake in the BSE-listed group entity.
The penalties, totalling to Rs.25 lakh are required to be paid within 45 days.
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Sebi norms require a promoter of a listed company to disclose, together with persons acting in concert with him, their aggregate shareholding and voting rights in the firm as on March 31, within a prescribed time period, to the relevant stock exchanges as well as the company.
As a promoter group entity, Galxo Group was under obligation to disclose the aggregate shareholdings to the BSE and NSE as well as to Glaxo Smithkline Pharmaceuticals for the year 2007.
Sebi found the disclosures were made by the entity, admittedly with an aggregate delay of 60 days.
Further, the Glaxo Group disclosed its shareholdings for the year 2012 and 2013 also with an aggregate delay of 158 days.