Market regulator Sebi has imposed Rs 4 lakh in penalty on Raj Investments, a former promoter firm of Global Boards Ltd (now Metroglobal), for violations of various disclosure norms.
Raj Investments had reduced its stake in the company by 11.87 per cent in 2005 but failed to make the mandatory disclosures.
In its order dated January 18, Sebi slapped a fine of Rs 2 lakh on Raj Investments for not disclosing the reduction in its shareholding/voting rights in Global Boards to the company within 4 working days.
Besides, Sebi imposed another Rs 2 lakh on the entity, as being a promoter he was required to disclose the number and percentage of shares held by it to Global Boards within 21 days from the closing of the financial year, as well as the record date of the company for the purposes of declaration of dividend.
"...hereby impose a consolidated monetary penalty of Rs 4 lakhs on the noticee, namely Raj Investments Ltd, for violation of Regulation..." Sebi said.
A probe by Sebi had found that Raj Investments had reduced its shareholding in Global Boards from 2.30 crore shares, representing 30.87 per cent stake, as on quarter ended March 2005 to 1.42 crore amounting to 19 per cent stake as on quarter ended September 2005.