Sebi has slapped a total penalty of Rs 3 crore on three promoters of Presha Metallurgical Ltd for failing to make timely disclosures.
A fine of Rs 1 crore each has been imposed on Nilesh Kava, Bipin C Gadhiya and Govind Senma.
It was found that they did not make disclosures about sale of shares in the company as required under Sebi norms.
Relevant disclosures under Sebi's Prohibition of Insider Trading (PIT) and Substantial Acquisition of Shares and Takeovers (SAST) regulations were not done for nearly four years.
"I am of the view that the penalty of Rs 1 crore would be adequatefor violation of both PIT Regulations and SAST Regulations as the nature of violation in both the Regulations are identical," Sebi's Adjudication Officer Rachna Anand said in the order.
Correct and timely disclosure are essential part of the proper functioning of the securities market and failure to do so results in preventing the investors from taking well informed decision, it added.
