Market regulator Sebi has imposed a collective penalty of over Rs one crore on eight entities for allegedly failing to make a public announcement regarding their shareholding in Axon InfoTech.
The regulator levied a fine of Rs 12.57 lakh each on -- Giriraj Kishore Agrawal,Kushal Software (presently Octant Industries), Kushagra Software (currently called Concurrent (India) Infrastructure), Shreeji Herbal (now known as Golden Steel Industries), Handful Investrade, Sheetal Kadam, VRP Financial Services and Keystone Stock Finance.
"...a total penalty of Rs 1,00,60,000 on the noticees collectively, shall be commensurate with the violations committed by them," Securities and Exchange Board of India (Sebi) said in its order issued yesterday.
It added that as the violation committed by the entities was in concert with each other "the penalty amount should be equally shared by them...penalty imposed on each of them shall be Rs 12,57,500".
The matter relates to a probe conducted by Sebi into the dealings in the shares of Axon InfoTech from March 17 to September 19, 2006.
Sebi had found that the eight entities "acting in concert with each other", had together acquired 32.02 per cent shares of the company on April 5, 2006 but they failed to make the required public announcement as specified under the norms.
According to the rules, a public announcement is required when the acquisition of shares in a company by a person or person acting in concert crosses the limit of 15 per cent.