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SEBI: Slaps fine of INR15 lakh on promoters of SVC Resources

The regulator in a separate order imposed a fine of Rs 2 lakh on one Ashok Gupta for not disclosing additional acquisition of shares of the firm in 2011 and thereby violating insider trading norms.


PTI Last Updated at 31 Jul 2018, 22:07 IST India

Regulator Sebi today slapped a fine of Rs 15 lakh on three former promoters of SVC Resources for violating market norms regarding the transfer of shares.

The regulator in a separate order imposed a fine of Rs 2 lakh on one Ashok Gupta for not disclosing additional acquisition of shares of the firm in 2011 and thereby violating insider trading norms.

Gupta was the chairman and managing director of SVC Resources at the time of the violation, according to the Sebi order.

Sebi found that promoter Powerhouse Fitness Ltd (formerly known as Naaz Trading and Finance Ltd) exited from the company after transferring its shareholding to two other promoters, Akshat Gupta, Ankush Gupta without any payment through an off-market transaction in July 2009.

Since the transaction entered into by the three former promoters was an off-market transaction, it has to be in conformity with the provisions relating to spot delivery contract under the Securities and Contract Regulation Rules (SCRA), the regulator noted.

To qualify as a spot delivery contract, actual delivery or transfer of shares and the payment should be on the same day as the date of the contract or the next day.

However, payment and transfer of shares have not taken place as per the time limit required for spot delivery contract as defined in SCRA hence violative of SCRA regulations, Sebi said and imposed fine of 5 lakh each on the three former promoters.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


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