Markets regulator Sebi today imposed a fine of Rs 3 lakh on G-Tech Stone for its alleged failure to make a timely disclosure of selling of shares in ERP Soft System.
This case relates to the alleged irregularities and other possible violations of regulatory norms.
According to the Securities and Exchange Board of India (Sebi) norms, any person who holds more than 5 per cent shares or voting rights in any listed company will have to disclose to the firm within two days the number of shares or voting rights held by him.
A Sebi probe found that G-Tech Stone, which held 3,45,100 shares amounting to 8.71 per cent stake in ERP Soft System during the quarter ended December 2011, sold 1,30,400 shares, or 3.29 per cent.
Following the transaction, G-Tech Stone's stake declined to 5.42 per cent at the end of March 2012. However, the company failed to disclose this change in shareholding within two days.
Thus, the firm violated the provisions related to PIT (Prohibition of Insider Trading) norm and Takeover Regulations, Sebi said.
Accordingly, the firm has been directed to pay Rs 3 lakh within 45 days from the date of this order.
