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SEBI imposes fine on Sampati Financial Services for disclosure lapses

Markets regulator SEBI has imposed a penalty of Rs 4 lakh on Rajkot-based Sampati Financial Services for disclosure lapses regarding the acquisition of Excel Castronics’s shares.

Noting that “the non-compliance continues even as on date”, the regulator fined the firm for the violation of SAST (Substantial Acquisition of Shares and Takeovers) and PIT (Prohibition of Insider Trading) norms.

The Securities and Exchange Board of India (SEBI) had conducted a probe from May to October 2014 in the matter of shares of Excel Castronics for the alleged violations by Sampati.

During the examination, the regulator observed that holding of Sampati increased from 50,000 shares, which is 0.614 per cent of share capital of the Excel to 4,32,897 shares, which is 5.31 per cent of the share capital of the firm.

The change in shareholding of Sampati in Excel to more than 5 per cent triggered the filing of disclosure in terms of SAST and PIT regulations to the company and to BSE, within two days of the receipt of shares.

However, Sampati failed to disclose the acquisition to BSE and company, SEBI said in an order dated September 19.

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