Markets regulator Sebi on Friday imposed a penalty totalling Rs 5 lakh on two individuals for delay in making open offer in the matter of Emerald Leasing Finance and Investment Company Ltd.
Sanjay Aggarwal and Ram Swaroop Aggarwal are the two individuals fined by Sebi.
The Securities and Exchange Board of India (Sebi), in its investigation found that Sanjay and Ram Swaroop were appointed as directors of Emerald and had acquired control of Emerald.
It was further revealed that both of them were obligated to make a public announcement to acquire shares in Emerald upon being appointed as its directors.
The regulator noted that the two persons did not make an open offer within four working days of acquiring control, that is by September 7, 2009.In fact, the open offer was made on October 20, 2016.
By not making the open offer within stipulated time, they violated the provisions of SAST (Substantial Acquisition of Shares and Takeovers) Regulations, Sebi said in an order on Friday while imposing the fine.
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