In two separate orders, the Securities and Exchange Board of India (Sebi) has levied a fine of Rs 6 lakh on Shree Surgovind Tradelink and a cumulative penalty of Rs 5 lakh on the firm's three shareholders - Virat Sevantilal Shah, Alok Virat Shah and Rajan Sevantilal Shah.
Sebi found that the company failed to make annual disclosures regarding the holdings of its promoters to the relevant stock exchanges during 2002-2011.
The market regulator noted that Shree Surgovind Tradelink had "neglected its duty of making the disclosures" as required under the norms "thereby reflecting the lackadaisical attitude of the noticee (Shree Surgovind Tradelink) in fulfilling statutory obligations".
"... hereby impose a penalty of Rs 6,00,000 on Shree Surgovind Tradelink Ltd," Sebi said.
In a separate order, Sebi said the three individuals had acquired more than 5 per cent of the total shares of Shree Surgovind Tradelink in 2011 and 2012 but failed to make the disclosures within two working days of the transactions, as prescribed under the norms.
"The noticees (shareholders) had acquired large number of shares on two occasions and had subsequently come out with an open offer to acquire shares as per the provisions of... Regulations; thereby showing the keen interest of the noticees in acquiring the shares of the target company (Shree Surgovind Tradelink)," Sebi said.
"Hence, the acquirers ought to have made timely disclosures in compliance with regulations so that the vital information would have reached the investing public on time," it added.
Sebi had come across the non-compliances by Shree Surgovind Tradelink and its shareholders while examining the open offer document made by Virat, Alok and Rajan to acquire 26 per cent shares of the company.