Sebi slaps Rs 31 lakh on 9 entities for disclosure lapses

Markets regulator Sebi Wednesday imposed a total penalty of Rs 31 lakh on nine entities for not disclosing the change in their shareholding in Mindvision Capital Ltd.

The nine entities facing the action are -- Dash Pharmaceuticals, Mandvi Dyes & Chemicals, Maxilla Financial Services, Parachit Sales & Marketing, Prime Dyes & Chemicals, Rajratan Trading Pvt Ltd, Sparkle Tooth Brush Mfg Co, Tutis Technologies and Vishal Information Technologies, as per the Sebi's order.

The regulator conducted an examination from July 2008 to September 2010 for the probable violation and found that the entities on various occasions purchased/sold more than 2 per cent shares of the company during the period of investigation.

Since they were holding more than 15 per cent of shares in the firm, any subsequent acquisition or sale in excess of 2 per cent will trigger the disclosure under SAST (Substantial Acquisition of Shares and Takeovers) norms, Sebi said.

Under the SAST norms, the entities were required to disclose the change in holding to the exchange and the firm within 2 days.

However, they failed to do so, Securities and Exchange Board of India (Sebi) said.

Accordingly, the regulator imposed fine on nine entities that varies from Rs 2 lakh to 5 lakh.

In a separate order, the regulator banned 9 entities from the securities market for seven years for manipulative trade and thereby creating artificial volume in the scrip of Polytex India Ltd.

The nine entities are Prem Mohanlal Parikh, Shree Shagun Financial Services, Bhavesh Prakash Pabari, Ankit R Sanchaniya, Chirag Rajnikant Jariwala, Bhavesh Securities and Commodities, Hemant Madhusudan Sheth, Bharat Shantilal Thakkar and Bipin Jayant Thaker.