The Securities and Exchange Board of India (Sebi), in three separate orders, has imposed a penalty of Rs 7 lakh on Zodiac, Rs 4 lakh on the company's former promoter Hozef Darukhanawla and another Rs 2 lakh on Ramesh V Shah, Jimit R Shah, Pushpa R Shah and Yesha R Shah.
According to Sebi, Zodiac has been penalised for not making annual shareholding disclosures for the year 2008 within the stipulated time. Besides, the company has violated regulatory norms by allotting shares issued on preferential basis before the prescribed time.
The regulator said that Darukhanawla had made certain sale transactions aggregating more than two per cent of share capital of Zodiac on different dates during the year 2010.
He was required to make disclosures to the company and exchanges within two working days of such transactions of sale along with the aggregate shareholding, which he failed and violated Sebi SAST (Substantial Acquisition of Shares and Takeovers) Regulations.
Sebi said that Shahs had acquired 1.04 lakh shares of Zodiac on March 26, 2010 after that their shareholding increased from nil to 13.48 per cent stake in the company.
Following the acquisition, Shahs were required to make disclosures to the company and bourses within two working days, which they failed.