INSUBCONTINENT EXCLUSIVE:
New Delhi: Markets regulator Sebi Monday settled cases of alleged disclosure lapses by two entities in shareholding of Dalal Street
Investments after they paid over Rs 37 lakh towards settlement fees.
According to two separate orders, entities S M Sheti Seva Pvt Ltd and
Resham Resha Pvt Ltd had paid settlement fee of over Rs 19.2 lakh and over Rs 18.9 lakh, respectively.
The Securities and Exchange Board of
India (Sebi) conducted a probe between September 2008 to July 2009 for alleged irregularity in dealings of Dalal Street Investments.
The
regulator observed that shareholding of entities had increased in company, making it necessary for them to make disclosures as required
under SAST (Substantial Acquisition of Shares and Takeover) Regulations and PIT (Prohibition of Insider Trading) Regulations.
However, while
adjudication proceedings were in progress, entities filed application with regulator to settle case.
Under settlement provisions, an entity
is allowed to settle charges by paying a penalty without admission or denial of guilt.
The settlement terms proposed by entities were
considered by Sebi's High Powered Advisory Committee (HPAC)
The committee recommended cases for settlement on payment of Rs 19,28,804 by S M Sheti Seva and Rs 18,96,990 by Resham Resha.
The
recommendation of HPAC was approved by panel of Whole Time Members of Sebi.
Separately, regulator has slapped a total fine of Rs 12 lakh on
two individuals for engaging in fraudulent trading in shares of Pressman Advertising Ltd.
The two individuals-- Nupur Agarwal and Amit
Kumar-- were part of a group of 29 entities that allegedly indulged in execution of reversal trades through a combination of on-market and
off-market transactions which led to artificial volume, thereby creating a false and misleading appearance of trading in scrips, Sebi
noted.
The two individuals indulged in reversal of trades in scrip of company and thereby created artificial volumes and misleading
appearance of trading without any intention of change of beneficial ownership of security, Sebi said in two separate but similarly worded
orders.
By doing such trades individuals have violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms.
Accordingly,
individuals have been fined Rs 6 lakh each.
