Sebi receives Rs 40 lakh as settlement charges over violation of norms

Markets regulator Sebi agreed to settle a probe against five individuals for alleged violation of disclosure norms after they paid Rs 40 lakh as settlement charges, according to an order by the watchdog.

The Securities and Exchange Board of India (Sebi) agreed to settle proposed adjudication proceedings in the case after it was approached by the individuals with a plea under the settlement regulations.

Under the settlement, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.

"By way of this order Sebi shall not initiate any enforcement action against the applicant (Bal Kishan Gupta, Ashutosh Gupta, Ritu Gupta, Manju Bansal and Sanjay Bansal)" for the alleged contravention, the regulator said in November 26 order.

The regulator had initiated adjudication proceedings against the individuals for alleged delayed disclosure under SAST (Substantial Acquisition of Shares and Takeover) norms for eight transactions from September 2002 to March 2009 and failing to make an open offer.

Thereafter, Sebi's High Powered Advisory Committee recommended the case for settlement on the payment of Rs 40.14 lakh. This was also approved by the regulator's panel of whole-time members, following which it remitted the amount.

In separate orders, Sebi levied a total penalty of Rs 6 lakh on two firms after they failed to comply with its direction of conducting the audit of records and systems of Sharepro Services.

The two firms, Subhtex India Ltd and SMS Techsoft, are clients of the registrar and transfer agent (RTA) Sharepro Services.

The regulator in 2016 had directed the firms to conduct a thorough audit of Sharepro regarding dividends paid and transfer of securities and also asked the companies to switch over its activities related to a RTA "either in-house or through another RTA registered with the markets regulator," Sebi said in orders dated November 28,

However, they failed to do so and thereby a fine of Rs 3 lakh each was imposed on them.

(With inputs from agencies.)