Markets regulator Sebi today imposed a penalty of Rs 2 lakh on Mahindra Ugine Steel Company's former chief executive officer (CEO) Ajit Lele for disclosure lapses.
According to a Sebi order, Lele had not disclosed within the specified time limit, the change in his shareholding in Mahindra Ugine Steel Company -- now known as Mahindra CIE Automotive -- on April 9, 2014 and June 23, 2014.
Lele had made the disclosures only on November 25, 2015, despite the requirement of making the same within two working days, as per the order.
"... there has been a delay of around 1 year 5 months in making the said disclosure to the stock exchanges," Sebi said.
The regulator noted that correct and timely disclosures are also an essential part of the proper functioning of the securities market and failure to do so results in preventing investors from taking well informed decision.
Taking into account the delay, Sebi said that the violation committed by Lele is a fit case for imposing monetary penalty.
Accordingly, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 2 lakh on Lele.
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