Sebi on Friday slapped a fine of Rs 35 lakh on Falcon Tyres for not providing the information sought by the regulator in a matter related to preferential allotment of shares of the firm.
In April 2012, the Securities and Exchange Board of India (Sebi) issued various summons to Falcon.
One of the summons sought the balance sheet of Falcon for the financial years 2009-10, 2010-11 and 2011-12. Another summon directed the company to confirm whether it signed any deed of assignment with three other entities—Suncap, Regus and Salputri—for assigning a loan of Rs 144.04 crore to itself.
In an order, Sebi said Falcon was informed to furnish required documents, but it had sought extension of time.
According to the order, despite multiple time extensions being granted to the firm, it failed to file its reply which depicts an approach to not cooperate with the investigation.
“Thus, for not complying with the summons for supplying information/ documents sought by the IA (investigating authority) during the investigations, it is held that Falcon has violated... Sebi Act,” the regulator said.
Noting that Falcon is “liable for monetary penalty”, Sebi slapped a fine of Rs 35 lakh on the firm.
In a separate order, the regulator imposed a penalty of Rs 4 lakh on Excel Castronics’ non-executive director Payal Jayeshbhai Madiyar for disclosure lapses.
In August 2014, the holdings of Payal in Excel Castronics increased from 3,91,532 shares to 4,20,762 shares, which is 5.167 per cent of the share capital of the company.
For the change in holding, Payal failed to make relevant disclosures in terms of SAST (Substantial Acquisition and Takeovers) Regulation and PIT (Prohibition of Insider Trading) Regulation.
It is held that Payal has violated SAST and PIT Regulations, Sebi said and imposed a penalty of Rs 4 lakh on her.