Sebi levies Rs 13.5 lakh fine on promoters of GMM Pfaudler

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Sebi levies Rs 13.5 lakh fine on promoters of GMM Pfaudler

Sebi found that the promoters had failed to comply with SAST norms.

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NEW DELHI: Capital markets regulator Sebi on Friday levied a fine of Rs 13.5 lakh on 13 promoters of GMM Pfaudler Ltd for failing to comply with takeover norms.

Among other individuals, the promoters include Millars Machinery Company Pvt Ltd, Skyline Millars Ltd, Uttarak Enterprises Pvt Ltd and Pfaudler Inc.

Sebi found that the promoters had failed to comply with Substantial Acquisition of Shares and Takeover (SAST) norms.

It noted that the company was paying three quarterly dividends and a final dividend every year since 2003. Hence, under SAST norms, the promoters were required to file disclosures for each of the four record dates every year for the dividends declared, in addition to the disclosure for year ending March 31 every year.

However, they failed to make disclosures, and on some instances made delayed disclosures.

Accordingly, Sebi has levied a fine of Rs 13.5 lakh on the promoters, to be paid jointly and severally by them.

“Correct and timely disclosures are also an essential part of the proper functioning of the securities market and failure to do so results in preventing investors from taking well-informed decision. Thus, the cornerstone of the Takeover regulations is investor protection,” Sebi noted.

In a separate order on Thursday, Sebi imposed a fine of Rs 3 lakh on stock broker Sunness Capital India Pvt Ltd for violating Stock Brokers and Sub-Brokers Regulations as well as for not complying with Sebi’s circular pertaining to running account settlement.

Among others, the broker had failed to settle funds and securities of clients, did not display on its website all the documents executed by a client, client’s position, margin and other related information.

Source- Economic Times.