Markets regulator Sebi has imposed a fine of Rs 5 lakh on Ramasamy Udayar Jagadeesan, the promoter and director of Thambbi Modern Spinning Mills Ltd, for violating disclosure norms.
The regulator has imposed the fine on Jagadeesan after noting that he did not make disclosures under SAST (Substantial Acquisition of Shares and Takeovers) Regulations and PIT (Prohibition of Insider Trading) Regulations.
Based on an alert, Sebi had examined the details of changes in Jagadeesan's shareholding in the firm in March 2013 and observed that through five transactions during the month, he had acquired 2,03,811 shares of the company.
Under PIT Regulations, Jagadeesan was required to make disclosures regarding the total number of shares held by him to the company and the stock exchange, within two working days of the respective transactions.
However, the promoter and director of the firm made the disclosures in January 2014, the Securities and Exchange Board of India (Sebi) noted in an order dated August 23.
The regulator also noted that Jagadeesan made delayed disclosure regarding the acquisition of 2,61,255 shares in March 2011.
Sebi said that the promoter and director of the firm has "violated" PIT Regulations by making delayed disclosures.
As Jagadeesan's shareholding in the company increased beyond the prescribed limit following the acquisition of 2,03,811 shares in March 2013, SAST Regulations required him to disclose to the firm as well as the stock exchange, the change in his shareholding within two working days of the acquisition.
However, the individual made the disclosure in January 2014, thereby, violating SAST Regulations, the regulator noted.
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