Market regulator Sebi today slapped a penalty of Rs 3 lakh on Bengal Finance and Investment for alleged failure to make requisite disclosures regarding its stake in Kajaria Ceramics within the stipulated time frame.
According to the Securities and Exchange Board of India (Sebi) findings, Bengal Finance was required to make disclosures about its acquisition of 5.61 per cent stake in Kajaria Ceramics to the company within two working days of the transaction.
However, the disclosures were made with a delay of 31 months and 13 days, the regulator added.
In an order today, Sebi concluded that Bengal Finance "by not making the necessary disclosures within the specified two working days, has violated the provisions of...The PIT (Prohibition of Insider Trading) Regulations, 1992 thus warranting monetary penalty...".
The market regulator has accordingly imposed a "penalty of Rs three lakh on Bengal Finance and Investment Pvt Ltd under...The Sebi Act,1992".
Bengal Finance had acquired 41.26 lakh shares of Kajaria Ceramics from the open market between May 4, 2011 and August 17, 2011 aggregating to 5.61 per cent stake in the company.
As per PIT norms, any entity who holds more than 5 per cent shares or voting rights in any listed company shall disclose to the company the number of shares or voting rights held by it on becoming such holder, within 2 working days.
