Thursday, July 26, 2018

SEBI SLAPS RS 8 LAKHS FINE ON FOUR INDIVIDUALS IN OREGON COMMERCIAL CASE & RS 2 LAKHS ON OREGON FOR VIOLATIONS OF PIT , SAST AND LODR NORMS.


SEBI SLAPS RS 8 LAKHS FINE ON FOUR INDIVIDUALS IN OREGON COMMERCIAL CASE & RS 2 LAKHS ON OREGON FOR VIOLATIONS OF PIT , SAST AND LODR NORMS.

R V Seckar practicing company secretary 09848915177 rvsekar2007@gmail.com,http://rvseckarpracticingcompanysecretary.com


BUYING OF OREGAN COMMERCIAL SHARES BY INVESTORS


SEBI on 25 July 2018 imposed Rs 8 lakh penalty on four individuals for not making relevant disclosures with regard to transactions in Oregon Commercial shares.

In four separate but similarly worded orders, the regulator said it had conducted an investigation in the scrip of Oregon Commercial, now known as Saianand Commercial in two phases, one from January to August, 2010 and another during August 2010-January 2011.

During the investigation, the four individuals acquired and disposed shares of Oregon on several occasions.

R V Seckar practicing company secretary 09848915177 rvsekar2007@gmail.com,http://rvseckarpracticingcompanysecretary.com


Offences under PIT and SAST Regulations

Under PIT (Prohibition of Insider Trading) Regulations and SAST (Substantial Acquisition of Shares and Takeovers) norms, they were required to make necessary disclosures to the Oregon and the exchange where the shares of the company are listed.

FAILURE TO MAKE DISCLOSURES UNDER PIT & SAST Regulations

However they failed to make disclosures under PIT and SAST norms hence "liable for monetary penalty" Sebi said in an order, and imposed a fine of Rs 8 lakh on Krunal Gopaldas Rana, Arif Gulam Mustufa Shaikh, Miteshgiri Chandrangiri Goswami and Nilesh R Pandya.

Failure in not Making Announcement under LODR by Oregon

In a separate order, SEBI imposed a penalty of Rs 2 lakh on Oregon Commercial for not making corporate announcement to the exchange regarding the change in the management of the company and thereby violating LODR (Listing Obligations and Disclosure Requirements) Regulations.

R V Seckar practicing company secretary 09848915177 rvsekar2007@gmail.com,http://rvseckarpracticingcompanysecretary.com


What Compliance Officers' of Listed Companies Could  Learn from the above SEBI Order ?

1.  Individual investors who buys shares of a listed entity beyond a limit should intimate to the company and to the stock exchange within a prescribed time limit under Under PIT (Prohibition of Insider Trading) Regulations and SAST (Substantial Acquisition of Shares and Takeovers) norms. Failure to report will be treated as a violation and SEBI may levy penalty for the same.

2.  Corporate concerned shoud make corporate announcement to the stock exchange regarding the change in the management of the company and if not , it will be regarded as a violation of LODR (Listing Obligations and Disclosure Requirements) Regulations.

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