Markets regulator Sebi Wednesday imposed a fine totalling Rs 12 lakh on two individuals for disclosure lapses regarding change in shareholding of Parichay Investments.
In two separate but similarly worded orders, Sebi fined one Dhirenkumar Dharamdas Agarwal and Amul Gagabhai Desai for violation of SAST (Substantial Acquisition of Shares and Takeovers) and PIT (Prohibition of Insider Trading) regulations.
The Securities and Exchange Board of India (Sebi) conducted an investigation into the scrip of Parichay from July to August, 2011.
The regulator found that both individuals on several occasions had crossed the threshold of 5 per cent and 10 per cent shareholding and their stake reduced by more than 2 per cent on numerous times.
Under SAST norms, a shareholder is required to disclose to the exchange and the firm regarding the change in shareholding when it crosses the threshold of 5 per cent and 10 per cent.
Similarly, the change in the shareholding by more than 2 per cent is required to be disclosed to the exchange and firm under PIT regulations.
However, the individuals failed to do so and hence violated SAST and PIT provisions, Sebi said.
Accordingly a fine of Rs 6 lakh each was imposed on both individuals.
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