Sebi slaps Rs 1 lakh fine on Bilcare CMD

SEBI

Market regulator Sebi today said it has imposed a penalty of Rs 1 lakh on Bilcare's CMD Mohan H Bhandari for failing to submit a mandatory report regarding his acquisition of company's shares.

Securities and Exchange Board of India (Sebi) slapped a fine of Rs one lakh on Bilcare Chairman and Managing Director (CMD) Bhandari and said the penalty is "commensurate with the default committed by the Noticee (Bhandari)".

The regulator said it had carried a probe into the shares of Bilcare during January 1-December 11, 2003.

The investigation had revealed that Bhandari had acquired 5.60 lakh shares representing 17.6 per cent stake. As a result of the acquisition, the shareholding of Bhandari increased from 5.37 per cent in April 1, 2003 to 22.43 per cent in September 5, 2003.

As per the norms, an acquirer is required to submit a report about the share acquisition to Sebi within 21 days of the transaction. Thereafter, the person is entitled to exercise 15 per cent or more of the voting rights in the company.

However, Bhandari failed to submit the report, Sebi said.

The regulator said it also observed that Bhandari was eligible for exemption under the regulations as it was an inter-se transfer amongst promoters. But, he did not claim exemption, requiring him to submit the report, it added.

Please read our terms of use before posting comments
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
comments powered by Disqus