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Capital market regulator Sebi today disposed of a case against Alka Securities promoter, Mahendra Pandey, that related to violations of disclosure norms by him in 2008-09.
Sebi had alleged that Pandey failed to disclose the change in his shareholding pattern to the relevant stock exchanges, as required by him under the norms, after acquiring company stocks on various occasions between 2008 and 2009.
As per the rules, a director or officer in a company has to make disclosures to the company and to the relevant stock exchange, if there has been a change in his shareholding which exceeds Rs 5 lakh in value or 25,000 shares or 1% of total holding. Such disclosures have to be made within two working days of the acquisition or sale of the firm's shares.
Citing that Pandey was only a compliance officer in the company during the relevant period, the market regulator said that "it is difficult to conclude that the noticee (Pandey) was in a position to influence or direct the affairs of the company while acting as a compliance officer".
Securities and Exchange Board of India (Sebi) said that the based on "nature of duties and functions" carried out by Pandey during the relevant period, it cannot be concluded that he falls under the purview of rules on disclosures norms.
"...Hereby conclude that the charges levelled against the Noticee, Mahendra Pandey do not stand established and the matter is, accordingly, disposed of," Sebi said in the order.
Sebi probe had found that Pandey had bought a total of 5.23 lakh shares and sold a total of 8 lakh scrips of Alka Securities in 2008 resulting in change in his shareholding.
Further, he had acquired a total of over 2 lakh shares on various occasions in 2009.
The transactions had resulted in change in his stake by more than 25,000 shares and obligated him to make disclosures.
