 "Sebi")
Markets regulator Sebi has imposed a penalty of Rs 2 lakh on Orissa Minerals Development Co Ltd and two individuals for lapses in making timely disclosures about certain price sensitive information back in 2012.
The watchdog had conducted a probe into the alleged delayed disclosure of price sensitive information by OMDC to the stock exchanges for the July 2 to August 10, 2012 period.
The fine has been imposed on OMDC, Satish Chandra and Sucharita Das. Chandra and Das were Managing Director and Compliance Officer, respectively, at that time, according to an order.
It was found that there were delays in making disclosures in at least three instances, including about environmental clearance for Kolha Roida Iron & Manganese Ore Mining Project.
"... environment clearance in respect of Kolha Roida Iron & Manganese Ore Mining Project; Merger of Bisra Stone Lime Co. Ltd with the Company; Issue of bonus shares and Splitting of shares of the company were 'price sensitive information'," the order, dated August 20, said.
As per the order, it is on record that the company has failed to make the disclosure within such reasonable period of time on a prompt and immediate basis in three out of the four cases mentioned above, the only exception being the dissemination of the information of splitting of the shares of the company.
"The said three, disclosures were made by the company to stock exchanges belatedly each after a period of more than 24 hours since the time of their receipt by OMDC. The event of delay was therefore observed in case of the three price sensitive information," it noted.
Imposing the fine, Sebi said that belated disclosures made by listed companies tend to mislead gullible investors and place them in a precarious position.
"Such delay in making the disclosure of important price sensitive information, as was observed in the present case, can erode the confidence of investors and can also lead to possible market abuses/ misconducts," it noted.
The noticees -- OMDC, Chandra and Das -- shall jointly pay the fine.
In the order, Sebi's Adjudicating Officer G Ramar also said the investigation report of OMDC for the examination period has not brought out any adverse remarks/ findings/ observation with respect to price manipulation in the scrip, abnormal trading pattern and the connection of clients with the company's management.
"Be it as it may, the timely disclosure of the price sensitive information was of significant importance from the standpoint of the investors and to bring more transparency in the affairs of the company. Besides this, the requirements of law also mandate the company to make timely disclosures to prevent market misconducts," he said.
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