As per Sebi, the entities being transferee/ buyer and transferor/seller have not paid or received consideration for off-market receipt and transfer of shares which is not in conformity with market norms.
Sebi has imposed monetary penalties on 11 entities, including three promoters of Videocon Industries Ltd, for certain violations of market norms with respect to settlement of spot transactions related to shares of the company.
Sebi levied a fine of Rs 1 lakh each on three promoters—Electroparts (India) Pvt Ltd, Videocon Realty And Infrastructures Ltd and Roshi Appliances Pvt Ltd—and another entity P-Square Financial Consultancy Pvt Ltd, on Tuesday.
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The other seven entities—Acuity Merchants Pvt Ltd, Coastal Fertilisers Ltd, Richhold Properties Pvt Ltd, Kaberi Goods Pvt Ltd, Invorex Vincom Pvt Ltd, Akansha Commodities Pvt Ltd, and Godavari Commercial services Pvt Ltd—were slapped with a fine of Rs 1 lakh each through an order passed on August 6.
The watchdog had conducted an investigation into the trading of the firm’s shares during the April-September 2017 period.
There were some transactions between the three promoters of Videocon and Acuity Merchants, and those were plain off-market transfers, the regulator said.
Further, Acuity Merchants had transferred the shares through off-market transfers to the other seven entities.
As per Sebi, the entities being transferee/ buyer and transferor/ seller have not paid or received consideration for off-market receipt and transfer of shares which is not in conformity with market norms.
The conduct of the parties and nature of the transactions establishes that they entered into a transaction in off-market, without receipt/ payment of consideration, which is in contravention of the provisions relating to spot delivery contracts, Sebi said in similarly-worded separate orders.
It further added that the transactions were “illegal, void and a nullity”.