Market regulator Sebi today slapped a fine of Rs 12 lakh on the promoter of Rajoo Engineers, Devyani Chandrakant Doshi, for violating disclosure norms.
The market watchdog imposed the penalty on Doshi for violation of Sebi (Substantial Acquisition of Shares and Takeover) Regulations.
Devyani, who was holding 13,45,000 shares (3.66 per cent) in Rajoo Engineers as on February 6, 2013, received another 27,77,000 shares through an open market route from her husband Chandrakant Nanalal Doshi which resulted in an increase in her holding to over 5 per cent in the company.
Further, the shareholding of her husband came down to zero from 27,7,000 shares (7.56 per cent).
Following the share transactions, the Doshis were required to make the necessary disclosures to the company as prescribed under Sebi's norms. However, they failed to make the disclosures.
Consequently, the Securities and Exchange Board of India (Sebi) has slapped the fine on Devyani. Also, the regulator said that proceedings against Devyani's husband 'stand abated' as he expired in January, 2013 and is no more alive to face the penalty.
According to Sebi's norm, promoter of a listed firm is required to disclose to the company and the concerned bourse about change in holdings from the last disclosure in case the change exceeds Rs 5 lakh in value or one per cent of total shareholding, whichever is lower.
