Securities and Exchange Board of India (SEBI) imposed a fine of Rs 22 lakh on 13 promoters of Trimurti Drugs and Pharmaceuticals Ltd (TDPL) for their failure to make public announcement regarding acquisition of the company's shares.
A SEBI-conducted probe found that TDPL Healthcare (India) Ltd, promoter entity of Trimurti Drugs, along with the persons acting in concerts (PACs) had acquired 22.25 lakh shares or 3.3 percent stake of Trimurti Drugs on January 22, 2010, through bulk deal.
AdvertisementTDPL Healthcare along with the PACs were required to make a public announcement in terms of SAST (Substantial Acquisition of Shares and Takeovers) Regulations as it was made through bulk deal. "However, they failed to make such announcement. Not making public announcement, on acquiring shares of TDPL on January 22, 2010, have not only failed to comply with the provisions of SAST Regulations but have also deprived the shareholders of the exit opportunity at the relevant time which has to be viewed seriously," SEBI noted.
Accordingly, SEBI has imposed a penalty of Rs 22 lakh on 13 noticees -- TDPL Healthcare, Arun Kumar Bhangadia, Arun Kumar Bhangadia HUF, Arvind Kumar Bhangadia, Arvind Kumar Devansh Bhangadia HUF, Gopikishan Arun Kumar Bhangadia HUF, Jyothi Bhangadia, Kantha Bhangadia, Kiran Bhangadia, Murlidhar Mutgi, Sripriya Mutgi, Sulochana Mutgi and Trimurti Advisory Services.
The fine should be paid jointly and severally, SEBI said in an order.
During the period under review, these entities were in possession of 66.83 percent stake in Trimurti Drugs.
As per SEBI norm, no acquirer, who together with PACs holds, 55 percent or more but less than 75 percent stake in a target company, would purchase either by himself or through PACs any additional shares entitling him to exercise voting rights, unless he makes a public announcement about such transaction.
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