Sebi imposes penalty of Rs 3 lakh on three entities

Market regulator Sebi today imposed a total penalty of Rs 3 lakh on three entities for failing to make disclosures regarding change in their shareholding in Innovative Tech Pack Ltd (ITPL).

In three separate orders, Sebi slapped Rs one lakh fine each on Sanjeev Reddy Chilumala, Ratna Ketineni and Kanaka Durga Ketineni for failing to make disclosures as required under the norms.

"...Hereby impose a monetary penalty of Rs one lakh...On the noticee (Chilumala)," Sebi said.

Similar worded orders were also passed against Ratna Ketineni and Kanaka Durga Ketineni.

As per Sebi norms any person who holds more than 5 per cent shares for voting rights in a company has to disclose the number of shares held and change in shareholding. The disclosures have to be made even if such change results in stake falling below 5 per cent.

It was alleged that all the three entities had reduced their respective stakes in ITPL between April-July, 2010 but did not make the required disclosures of change in their shareholding.

Sebi found that that Chilumala was holding 6.91 per cent stake in ITPL as on April, 2010 which got reduced to 2.21 per cent in June 2010.

Similarly, the shareholding of Ratna Ketineni reduced to 2.92 per cent in July 2010 from 9.68 per cent in April 2010, while that of Kanaka Durga Ketineni declined to 4.18 per cent in June from 6.8 per cent stake held in April.

However, Sebi in its orders said that the available records did not indicate the amount of disproportionate gain or unfair advantage made by the three entities.

EDITORIAL OF THE DAY

  • No ifs and buts, please, in India’s engagement with Iran

    Some foreign policy purveyors in this country have for long insisted that India does not leverage its civilisational connections as it should or is ca

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture