Markets regulator Sebi today imposed a penalty of Rs 10 lakh on one Arvind Kumar Mittal for failing to make timely disclosures with regard to change in management rights and control of a firm.
After finding Mittal of violating Sebi SAST (Substantial Acquisition of Shares and Takeovers) Regulations, the regulator has penalised Mittal.
Mittal had taken over the control of the management including the day to day affairs of Neil Industries on August 20, 2009 following an MoU (Memorandum of Understanding) between him and the then board of directors.
However, Mittal failed to make a public announcement about taking over the control within the stipulated time, which was in violation of SAST norms.
Sebi SAST Regulations require an entity to make a public announcement within four days of taking over the management rights of a company.
The announcement regarding the change in management rights were made by Mittal in October 2014 after a delay of more than five years.
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