Markets regulator Sebi today imposed a total penalty of Rs 10 lakh on Prime Capital Market and Warner Multimedia for disclosure lapses in the matter of Blue Circle Services. The order has come following an investigation by the Securities and Exchange Board of India (Sebi) into the trading activities of certain entities in the scrip of Blue Circle Services Ltd (BCSL) during the period from October 21, 2011 to March 31, 2013. Prime Capital was promoter of BCSL and Warner Multimedia was part of its promoter group during the investigation period. Further, it also came to light that during the probe period there were changes in the shareholding of Prime Capital in BCSL exceeding Rs 5 lakh in value on three occasions and that of Warner Multimedia crossing that limit on eight occasions. Prime Capital and Warner Multimedia were required to make disclosure about any change in their shareholding which exceeded 5 lakh in value within two working days to BCSL as well the stock exchange (BSE), as per the PIT (Prohibition of Insider Trading) Regulations. In the order, Sebi said Prime Capital and Warner Multimedia failed to make the requisite disclosures to the stock exchange within the timeline as stipulated under the PIT Regulations about change in their shareholding exceeding Rs 5 lakh in value on two and eight occasions, respectively.
“Considering that there has been failure in making disclosure to the stock exchange by Prime and Warner on two and eight occasions, respectively, the same are treated as repetitive,” Sebi said. While the regulator has fined Prime Capital Rs 2 lakh for the disclosure lapses, it has imposed a penalty of RS 8 lakh on Warner Multimedia.