Capital market regulator Sebi has slapped a total penalty of Rs 8 lakh on two promoter group entities of Blue Blends (India) Ltd for violating disclosure norms in 2006.
In two similar-worded orders today, Securities and Exchange Board of India said that the promoters -- Bindal Synthetics and Blue Blends Leasing -- had failed to make disclosures regarding regarding sale of more than 2 per cent stake in the company to the stock exchanges.
As per Sebi norms, an entity has to disclose purchase or sale transactions aggregating to 2 per cent or more stake in a company, to that company as well as the stock exchanges.
Sebi has imposed a penalty of Rs 4 lakh each on the two promoters for the said violations.
Sebi noted that these rules were "brought in specifically so that the investors and the public is aware of the change in shareholding of promoters/acquirers" and so that the investors "is not deprived of any vital information".
"However, the noticee, by not complying with the regulatory obligation of making the disclosures, has deprived investors of the important information at the relevant point of time," the regulator noted in the orders.
Sebi found that in 2006 Bindal Synthetics and Blue Blends Leasing had sold about 4.44 lakh shares and 4.89 lakh shares respectively that amounted to a stake of 2 per cent each.
The said violations came to light while Sebi was examining an open offer document with respect to acquisition of Blue Blends (India) shares.
In another order, Sebi has slapped a penalty of Rs 5 lakh on Champion Finsec Ltd for violating SAST (Substantial Acquisition of Shares and Takeovers) Regulations.
The violations took place from 2003 to 2006, which indicates the repetitive nature of the default committed by the noticee, the order said.
It added: "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. There can be no dispute that compliance of regulations is mandatory and it is duty of Sebi to enforce compliance of these regulations.
