Market watchdog Sebi today slapped fines totalling Rs 14 lakh on Euro Finmart Ltd and its then promoters for allegedly failing to disclose their aggregate shareholding in the company within the requisite time-frame.
The regulator, in its order, has imposed a penalty of Rs 6 lakh on Euro Finmart and Rs one lakh fine each on the company's then eight promoters for violating Sebi (Substantial Acquisition of Shares and Takeovers) Regulations.
The promoters are Ashvarya Kumar Maheshwari, Krishan Kumar Maheshwari, Sandhya Maheshwari, Shobha Maheshwari, Vinod Kumar Maheshwari, Franz Gotz, Kailash Saboo and Kailash Dashottra.
The regulator said that Ashok Kumar Maheshwari had expired on February 1, 2012. Consequently, proceedings against him 'stand abated' in this case.
The Securities and Exchange Board of India (Sebi) said that Euro Finmart had failed to make yearly disclosures to the stock exchanges as required under Takeover Regulations between the years 1998 to 2005.
"...Noticee (Euro Finmart)has admittedly did not comply with ... Takeover Regulations for a period of 8 years for which it is liable for monetary penalty," Sebi said.
Besides, Sebi, in its show cause notice, alleged that Maheshwaris, Sahoo and Dashottra being promoters of Euro Finmart Ltd had failed to disclose their aggregate shareholdings to the exchanges and the company as required under regulatory norms. They made the disclosures with a delay of 12 days.
"...The violation had continued for 12 days, where the noticee (eight individuals) failed to make disclosures in compliance with ...The Takeover Regulations," Sebi said in similar-worded orders.
"...Violations on the part of the noticee (eight individuals) cannot be taken lightly as the noticee failed to make the necessary disclosures within the stipulated time for which he is liable for monetary penalty," it added.
