Sebi slaps Rs 1.50 lakh fine on GMR Holdings
The shares of GMR Industries were purchased by GMR Investments and Varalakshmi Investment. The two entities later merged into a single entity, GMR Holdings.
Securities and Exchange Board of India (Sebi) has slapped a penalty of Rs one lakh on GMR Holdings for not filing requisite disclosures and another Rs 50,000 for not making the the disclosures within the stipulated time as per the norms.
"The noticee (GMR Holding), by not complying with the regulatory obligation of making the disclosure had concealed the vital information from investors," Sebi said in an order.
"By virtue of the failure on the part of the noticee to make the necessary disclosure on time, the fact remains that the shareholders/investors were deprived of the important information at the relevant point of time," it added.
In 2004, Sebi had received a report regarding purchase of shares of GMR Industries by GMR Investments and Varalakshmi Investment, on preferential issue basis.
Examination by Sebi revealed GMR Industries made a preferential allotment of 44 lakh shares on preferential basis to the acquirers in March 2000. This included 28.80 lakh shares to GMR Investments and 15.20 lakh shares to Varalakshmi Investment.
As per the regulator, the stake of GMR Holdings had exceeded 5 per cent which required the entity to make requisite disclosures to the concerned stock exchanges within a stipulated time as given
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