Sophia Finance pays Rs 5L to Sebi

Nov 08 2012, 05:33 IST
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SummarySebi has dismissed a case against Sophia Finance after the entity paid Rs 5 lakh to settle charges for alleged delay in complying with the disclosure norms regarding shareholding pattern.

Market regulator Sebi has dismissed a case against Sophia Finance Ltd after the entity paid Rs 5 lakh to settle charges for alleged delay in complying with the disclosure norms regarding shareholding pattern.

In an order dated October 30, Sebi said that as per the consent terms it "shall not initiate any enforcement action against the applicant (Sophia Finance Ltd) for the said delay in compliance".

According to Sebi, Sophia Finance has delayed in complying with the regulator's disclosures norms regarding change in shareholding pattern among others.

Thereafter, Sophia Finance under Sebi's consent order mechanism offered to make a payment of Rs 5 lakh as settlement charges, the market regulator said.

A High Powered Advisory Committee (HPAC) considered the consent terms and recommended the case for settlement on payment of the said amount, Sebi added.

The HPAC noted that Sophia Finance is a defunct company with a paid up capital of only Rs 20 lakh and that the non-compliances were technical in nature.

In a separate order, Sebi has disposed of the case against Sharp Trading & Finance Ltd after the entity made a payment of Rs 2.50 lakh as settlement charges for allegedly delaying disclosures related to its shareholding.

In an order dated October 30, Sebi said that as per consent terms it "shall not initiate any enforcement action against the applicant (Sharp Trading & Finance) for the said delay in compliance".

The shareholding of the promoter group of the company had increased from 2.01 per cent in March, 2003 to 71.73 per cent in March, 2004 which was disclosed to the stock exchange with a delay, Sebi said.

However after 2004, there was no change in the holding of the promoter group during the period for which the belated disclosures were made, Sebi added.

The entity proposed to settle proceedings for the said delays in compliance of norms with a payment of Rs 2.50 lakh which was recommended by HPAC, the market regulator said.

The same was accepted by panel of whole time members of Sebi.

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