The Securities and Exchange Board of India (Sebi) in an order imposed a penalty of Rs 2 lakh on Himanshu Kanakia and and Rs 1 lakh on Rasesh Kanakia for not complying with the provisions of Takeover Regulations.
The matter refers to a case way back in 2012 when Kanakias were promoters of Cinemax India.
According to Sebi, Kanakias have themselves submitted that the delay in disclosure was in respect of release of encumbrance and not of pledge of shares.
"Thus, I find that the noticees (Kanakia) were well aware of the requirement of disclosure of encumbered shares under the Takeover Regulations, 2011. I have, however, taken note of the fact that the delay was six days in respect of Himanshu Kanakia and one day in respect of Rasesh Kanakia," Sebi Adjudicating Officer Anita Kenkare said.
"Delayed compliance disclosure requirements by the promoters of a listed company undermines the regulatory objectives and jeopardizes the achievement of the underlying policy goals," Kenkare added.
As per Sebi's norms, the promoter of every target company needs to disclose details of any invocation or release of encumbrance of shares to the company and stock exchanges within seven working days from the creation or invocation or release of encumbrance.