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The capital market regulator, Securities and Exchange Board of India (Sebi), has fined seven promoters of Hindustan Unilever Limited (HUL) Rs 50 lakh for delays in disclosures dating to 2006.
The disclosures were periodic regarding shareholding and voting rights, according to the Sebi order. “The details of the shareholding of the noticees and timely disclosure thereof were of significant importance from the point of view of investors as that would have prompted them to buy or sell shares of the company.” The delays ranged from four-31 days days on six occasions. Sebi found violations in 2006, 2008, 2009, 2010, 2011 and 2013. The regulator fined Unilever Plc Rs 8 lakh. It named Brooke Bond Group, Unilever Overseas Holdings AG, Unilever UK & CN Holdings, Brooke Bond South India Estates, Unilever Overseas Holdings BV and Brooke Bond Assam Estates. These were fined Rs 7 lakh each. "The non-compliance was inadvertent without any intention to conceal information or gain advantage. There was no change in Unilever’s shareholding between March 2005 and April 2013 and, therefore, no unfair benefit attained nor harm caused to the investors or public at large," said a spokesperson to Business Standard.
The regulator looked into the matter following its examination of documents pertaining to the company’s open offer. The company had announced in April 2013 that it would acquire up to 22.5 per cent shares of the company through an open offer.
The regulator had issued a show cause notice to the company on November 29, 2013, according to the order.
A spokesperson for the company said that there was no change in Unilver's shareholding during the time of the delays.
