)
Market watchdog Sebi has slapped a fine of Rs 1.5 lakh on Highline Finance for not making disclosures about its shareholding in Raj Packaging Industries Ltd (RPIL) within the prescribed time frame.
In an order dated July 26, the Sebi has imposed "a penalty Rs 1.5 lakh on Highline Finance & Investment Pvt Ltd" for the failure to comply with the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations."
In its show cause notice, Sebi had charged that Highline Finance, which held 9.14% stake in RPIL as on June 30, 2010, sold 84,000 shares by September 14, 2010 resulting in a change of 2.12% of holding of the company.
It further said that from September 15, 2010 to October 4, 2010, Highline offloaded 84,857 shares, amounting to 2.13% stake, of RPIL.
No disclosures in this regard were made to the company by Highline Finance in the prescribed format and within the specified timelines under Sebi's Prohibition of Insider Trading regulations, the regulator said.
According to Sebi's norm, any person who holds more than 5% shares or voting rights in any listed company is required to disclose to the company in a prescribed format about the number of shares and voting rights held and change exceeding 2% of the total shareholding or voting rights in the company within two working days of such change.
