Markets regulator Sebi today imposed a penalty of Rs 4 lakh on Swagruha Infrastructure Ltd (SIL) for failing to make requisite disclosures for 11 straight years.
After concluding that SIL violated the provisions of SAST (Substantial Acquisition of Shares and Takeovers) Regulations, the regulator imposed the fine on the firm, according to a Sebi order.
As per SAST Regulations, SIL was required to make yearly disclosures with regard to changes in shareholding of certain entities to the exchange within 30 days from the financial year ending March 31 as well as the record date for dividend declaration.
"The noticee (SIL) had made the relevant disclosures... with a huge delay, for the period 2001 to 2011," the regulator added.
Sebi noted that one of the main objectives of the SAST Regulations is to achieve fair treatment by inter alia mandating timely disclosures by entities and ensure adequate and factual information to the public or investors or shareholders so as to enable them to take a balanced investment decision.
"The noticee (SIL) committed the default for eleven consecutive years indicating the repetitive nature of the default," the regulator said.
In a separate order, the regulator imposed a fine of Rs 1.01 lakh on Padma Impex Pvt Ltd -- the erstwhile promoter of Kailash Auto Finance Ltd -- for disclosure lapses.
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