Sebi imposes Rs 25 lakh penalty on an individual in Metkore Alloys and Industries case

Markets regulator Sebi on Wednesday imposed a fine of Rs 25 lakh on an individual for failing to make public announcement with regard to acquisition of Metkore Alloys and Industries Ltd's shares.

The individual -- Prashant Boorugu -- violated Substantial Acquisition of Shares and Takeovers (SAST) norms, Sebi noted in its order.

Boorugu was the promoter of Metkore during the period from March 2013 to December 2015, and as of June 2015, he held 4.26 per cent of the total shareholding in the company.

The order came after Sebi conducted an investigation with respect to trading in the scrip of Metkore Alloys and Industries Ltd (MAIL) and found that Boorugu had violated the provisions of SAST rules.

The regulator found from the disclosure dated July 2015 made by Metkore to exchanges that Boorugu acquired shares of Metkore from another promoter of the firm Cronimet Mercon Invest Limited.

The acquisition of shares resulted in increase of shareholding of Boorugu from 4.26 per cent to 27.35 per cent of the total shareholding of the company, thereby breaching the threshold limit of 25 per cent, and he was required to make a public announcement to acquire shares in the firm, the order said.

However, he failed to do so, Sebi noted in its order.