Sebi imposes Rs 10 lakh fine on Raj Packaging shareholder

Capital market regulator Sebi today slapped a penalty of Rs 10 lakh on a shareholder of Raj Packaging Industries for alleged failure to file disclosures within the stipulated time.
The Securities and Exchange Board of India observed a change in the shareholding of Madanchand Prasanchand between January 17, 2013, and September 17, 2013, and that he had not informed the company within the two prescribed working days.
In its order today, Sebi said Prasanchand has admitted to "the delay in complying" with the norms. Sebi also noted he had had not made any submissions with respect to the change in his holding by 2 per cent or more on two occasions (March 4, 2013 and June 6, 2013).

The market regulator said it is imposing a "penalty of Rs 10 lakh on Madanchand Prasanchand" which was "commensurate with the default committed" by him.
Prasanchand's stake in Raj Packaging increased to 15.78 per cent from 13.59 per cent and he should have disclosed the change to the company as required under the norms.
In a separate order, Sebi imposed a penalty of Rs 7 lakh on Jupiter Enterprises for allegedly failing to disclose on time that it had become a part of the promoter group of India Nivesh Capitals.

Jupiter had become part of the promoter group on May 14, 2012, and was required to make the disclosures to the BSE within two working days.

Sebi said it is imposing "a penalty of Rs 7 lakh on Jupiter Enterprises Ltd under...The Sebi Act, 1992."
As per Sebi regulations, a person is required to disclose to the company the number of shares or voting rights held within two working days of becoming a promoter or part of the promoter group of a listed company.