Capital market regulator Sebi has slapped Rs 5.25 lakh penalty on Koffee Break Pictures' two former promoters for alleged violations of disclosure norms.
In two separate orders, Securities and Exchange Board of India has imposed a fine Rs 2,62,500 each on Chanchal Jain and Rashi Jain for failing to make disclosures about change in their shareholding to the company and the stock exchange as is required under the norms.
Going by the shareholding pattern of Koffee Break on BSE, Rashi Jain and Chanchal Jain do not figure among the promoter group entities as on quarter ending December 2013.
"I find that a penalty of Rs 2,62,500 on the noticee would be commensurate for failure to make disclosures by the noticee," Sebi said in the two-similar worded orders issued yesterday.
As per norms, a promoter of a listed company has to disclose to the firm and the stock exchange if there has been a change in his/her shareholdings and if the this change exceeds Rs 5 lakh in value or 25,000 shares or 1 per cent of total shareholding, whichever is lower.
The market regulator has found that Chanchal and Rashi had acquired 1 lakh and 4.50 lakh shares of the company respectively in 2011 but failed to make the disclosures.
"...It may also be added that it is difficult to quantify the unfair advantage made by the noticee or the loss caused to the investors in a default of this nature," Sebi said.
The case relates to market regulator's investigation in the scrip of Koffee Break during the period October 1, 2011 to November 30, 2011.
