Securities market regulator Sebi has imposed a penalty of Rs 3 lakh on JMG Corporation for delay in filing disclosures with stock exchanges.
The Securities and Exchange Board of India (Sebi) noted that little over 8 lakh shares of JMG Corp were acquired by B N Enterprises amounting to 4.98 per cent stake in the company, on June 29, 2002.
Thereafter, JMG Corp was under an obligation to make the disclosures with respect to the said transaction, as required under the regulations.
Sebi found that the company had made the disclosures I against the due date of compliance with a delay of 246 days to the relevant stock exchange, in this case the Delhi Stock Exchange (DSE).
"By not making the disclosures on time, the noticee failed to comply with its statutory obligation. The timely disclosure is mandated for the benefit of the investors at large," Sebi said in the order dated January 21.
Accordingly, the market regulator has imposed "a penalty of Rs 3,00,000 on JMG Corporation Ltd" saying that "the said penalty is commensurate with the violations committed by the noticee (JMG Corp)".
As per Sebi norms, every company, whose more than 5 per cent shares are acquired has to disclose to all the stock exchanges on which it is listed the aggregate number of shares held by each of such persons within seven days of receipt of information.
The matter came to light after Sebi examined an open offer made by an individual for acquisition of JMG Corp's shares.
