Sebi slaps Rs 5 lakh fine of individual for non-disclosures

Mumbai, Mar 6 (PTI) Market regulator Sebi has imposed a penalty of Rs 5 lakh on an individual for allegedly not making requisite disclosures regarding his stake in MTZ Polyfilms.
Securities and Exchange Board of India (Sebi) has slapped a fine of Rs 5 lakh on one Sanjay Bajranglal Sharma who had dealt in the shares of the company in 2009-10, but allegedly failed to make the disclosures to the company and the concerned stock exchange.
"From the information given by BSE and the submission of the noticee (Sharma) it is observed that the noticee did not make the required disclosures," Sebi said in its order on Tuesday.
The regulator observed that that during the period between quarter ending June 2009 and September 2009, MTZ Industries Ltd (erstwhile MTZ (India) Ltd), a promoter group entity of MTZ Polyfilms, had transferred 56.25 lakh shares of the company on various occasions to Sharma in 2009.
It was further observed that Sharma then transferred the 56.25 lakh shares to MTZ Industries on various dates in 2010.
"After taking into consideration all the facts and circumstances of the case, I impose a penalty of Rs 5,00,000 (Rupees Five lakh only) ...on the noticee," Sebi''s adjudicating Officer Barnali Mukherjee said.
According to Sebi, due to such transfers there was more than 5 per cent change in Sharma''s shareholding in MTZ Polyfilms which as per regulations required disclosures within a stipulated time period.
As per norms, any acquirer, who acquires shares more than five per cent has to disclose at every stage the aggregate of his shareholding to the company and the concerned stock exchanges within two days of the transaction.