Market regulator Sebi today imposed a cumulative penalty of Rs 18 lakh on seven entities for failing to comply with disclosure norms related to shares of Kanel Oil and Exports Industries.
In an order, the Securities and Exchange Board of India (Sebi) has slapped a fine of Rs 5 lakh each on Kanel's two additional directors -- Kirtibhai Chhaganbhai Patel and Aditya Yogeshbhai Patel -- for delay in making disclosures with respect to their shareholding in the company.
The regulator has also levied a joint penalty of Rs 8 lakh on five entities, who were persons acting in concert (PACs), for not disclosing change in their collective shareholding in Kanel.
The PACs are -- Kyati Realties Ltd, Khyati Multimedia Entertainment, Kartikbhai J Patel HUF, Kamalkant R Rao and Radheshyam R Lodh.
Sebi found that Kartikbhai J Patel HUF had acquired 4.50 lakh shares of the company on April 11, 2012 which increased the collective shareholding of the PACs to more than 5 per cent tiggering the obligation on their part to make relevant disclosures.
In the case of the company's directors, Sebi noted that Kirtibhai Chhaganbhai and Aditya Yogeshbhai held 3.50 lakh and 1.75 lakh shares of Kanel respectively on date of their appointment but failed to make the disclosures regarding the same within the prescribed time.
As per Sebi norms, any person who is a director or officer of a listed company has to disclose to the company the number of shares or voting rights held and positions taken in derivatives within two working days of becoming a director or officer of the company.
The market regulator had examined the alleged violations with respect to Kanel for the period from October 21, 2011 to July 30, 2012.
