Sebi slaps Rs 2 lakh fine on promoters of VEIL
Capital market regulator Sebi today imposed a penalty of Rs one lakh each on two promoters of Veer Energy Infrastructure Ltd (VEIL) for alleged failure to make requisite disclosure regarding their stake in the company.
In two separate orders, Securities and Exchange Board of India (Sebi) slapped Rs one lakh fine each on Dhrenendra Shah, promoter director of VEIL and promoter Jigar Jaswantilal Shah.
Sebi in its order against Dhrenendra Shah said that as director of VEIL, Shah was required to make disclosures to the company and the concerned stock exchange if his shareholding exceeded 25,000 shares or 1 per cent. These disclosures had to be made within two working days.
"...it is established beyond doubt that the noticee (Dhrenendra) has violated Regulation...of the Prevention Insider Trading Regulations...warranting imposition of monetary penalty," Sebi said.
In the case of Jigar Jaswantilal Shah, the regulator said that as per norms if the change in shareholding exceeds 2 per cent of the total stake, the person has to make disclosures and that too within two working days.
"The noticee (Jigar) did not make the necessary disclosures as were required upon change in his shareholdings by more than 2 per cent and it is amply clear that he has failed to adhere by the statutory requirements under the law," Sebi said.
Both cases relate to a Sebi probe in the shares of VEIL during the period from November 1, 2008 to January 29, 2010.
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