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Sebi penalises 12 entities in Safari Industries case

LiveMint logoLiveMint 30-07-2017 PTI

New Delhi: Markets regulator Sebi has imposed a penalty of Rs2 lakh on 12 erstwhile promoter entities of Safari Industries (India) for violating disclosure norms.

The former promoter entities -- Amul Sumatichandra Mehta, Yugesh Sumatichandra Mehta, Akul Yugesh Mehta, Jayendra Yugesh Mehta, Mrudula Amul Mehta, Maitri Amul Mehta, Rachna Amul Mehta, Sunali Yugesh Mehta, Senator Investment, Touristor Investments, Yug Investment and Amul Sumatichandra Mehta-HUF -- have to pay the fine “jointly and severally”.

The latest ruling, passed on 28 July, comes after the Securities Appellate Tribunal (SAT) had twice directed Sebi to pass “fresh order on merits” against the 12 entities. The Securities and Exchange Board of India (Sebi) had in 2014 and then again in 2015, slapped a penalty of Rs2 lakh each on the erstwhile promoter entities of the apparels firm.

It was alleged that the entities had failed to comply with Sebi SAST (Substantial Acquisition of Shares and Takeover) Regulations by not making relevant disclosure about their shareholding to Safari Industries (India) within the stipulated time for the financial year ended 31 March, 2006. “I find that the noticees (former promoter entities) made a delayed disclosure to the company.

“The delay in the instant case is by seven (7) days on one occasion for the financial year ended 31 March, 2006 with regards to making the relevant disclosure under the provisions of... the Takeover Regulations to the company,” Sebi Adjudicating Officer Anita Kenkare said in the latest order.

“I find that the violation has been committed by the promoters of the company,” she added. In the order, Kenkare also considered the former promoter entities as PACs (Persons Acting in Concert), being promoters and part of the same promoter group.

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