Five individuals pay Rs 78 lakh to settle case with Sebi

Five individuals have paid a little over Rs 78 lakh towards settlement charges to market regulator Sebi in a case related to an alleged violation of takeover norms.

The individuals are Kamal R Agarwal, Naresh V Goyal, Minal K Agarwal, Shubhrangna N Goyal and Navdeep N Goyal (applicants).

The case pertains to the alleged violation of SAST (Substantial Acquisition of Shares and Takeovers) Regulations in respect of the trades in the shares of the Overseas Synthetics Ltd.

The applicants had filed a suo motu settlement application, proposing to settle, without admitting or denying the findings of fact and conclusions of law, through a settlement order.

It was alleged that the applicants were part of the promoter group of the company and carried out various transactions in the shares of Overseas Synthetics during October 2015 - August 2018 period.

The transaction was required to be disclosed to the stock exchanges within two working days under the takeover norms, but they had made disclosures with a delay of 147-1,142 days.

Thereafter, the individuals had filed an application for settlement with the regulator and remitted Rs 78.08 lakh towards settlement fees.

''...it is hereby ordered that the proceedings that may have been initiated for the default..settled qua the applicants,'' Sebi said in an order on Wednesday.

According to another order passed on Wednesday, Ekta Anand Kabra has settled with the watchdog a case of an alleged violation of takeover norms with respect to the acquisition of shares of Kabra Extrusiontechnik Ltd.

The individual has paid an amount of Rs 15.85 lakh as the settlement amount, with the disgorgement of profits of Rs 72,500 along with Rs 10,679 being the simple interest at the rate of 12 per cent.

Thereafter, the regulator settled the case.

In a separate order on Thursday, Sebi levied a fine of Rs 15 lakh on Vayaa Builder and Developers Pvt Ltd, Yogendra Bisay and Jitendra Bisay for illegally mobilising funds from the public through a collective investment scheme.

As per the order, the regulator said it appears that the maximum amount of money mobilisation has taken place in the FY 2013-14, which amounted to Rs 4.02 crore under the scheme of allotment of lands or developing colony/plots.

Therefore, it appears that Vayaa Builder and Developers had raised an amount of at least Rs 4.02 crore under the said 'scheme' from the public at large and had thereafter failed to repay the same, thereby causing a loss to the public.

The conduct of the Vayaa Builder and Developers and individuals have been greatly prejudicial to the interests of the investors and the integrity of the securities market, which has a significant impact on the public at large, the regulator said.