Sebi slaps Rs 35 lakh fine on Vaishnavi Gold, directors for not furnishing info, disclosure lapses

Sebi on Thursday imposed penalties totalling Rs 35 lakh on Vaishnavi Gold, (formerly Master Multi Tech) and its two directors for multiple violations, including lapses in making appropriate disclosures.

Apart from the firm, the market regulator fined its managing director (MD) MJVVD Prakash and director Jyotsana Lakshmi.

During an investigation covering the period between April 2010 and December 2010, the regulator noted that there was a change in the shareholding of the directors in the company.

Following the change in holding pattern, Sebi sought documents from the firm and its MD to ascertain the change in shareholding.

However, the firm and the MD "failed to reply or to provide the requisite information", Sebi said.

"If a person fails to comply with the summonses of investigation authority he is liable for penalty under ... Sebi Act," it said.

In a separate order, Sebi noted that Master Multi Tech (MMT) allotted over one crore equity shares to the shareholders of Tanmai Jewells in lieu of close to 70 lakh shares held in Tanmai by MMT.

The allotment of shares of MMT to the promoter group of Tanmai included allotment 34.68 per cent share capital of MMT to Prakash and 22.32 per cent to Jyotsana Lakshmi.

"The increase in the shareholdings of Prakash and Jyotsana in the scrip, triggers the disclosure requirement to be made in terms ... of SAST Regulations, 1997," Sebi said.

The directors however failed to make disclosure under relevant provisions of the Substantial Acquisition of Shares and Takeover (SAST) Regulations.

Accordingly, Sebi has imposed penalty on the firm, MJVVD Prakash and Jyotsana Lakshmi in the range of Rs 7.5 lakh to Rs 10 lakh through separate orders.