Markets watchdog SEBI today slapped a fine totalling Rs 25 lakh on GMR Holdings and Srinivas Bommidala for failing to make public announcement upon acquiring shares through bulk deal.
A SEBI probe found that GMR Holdings, promoter entity of Parrys Sugar (formerly known as GMR Industries) along with the Person Acting in Concert (PAC) Bommidala had acquired shares of Parrys Sugar on various occasions in 2009, through bulk deals.
They picked up 1,02,547 shares, 1.78 lakh shares, 1,26,134 shares and 1,09,936 shares of Parrys Sugar on May 6, May 7, May 8 and May 11, 2009, respectively, constituting 0.51 per cent, 0.89 per cent, 0.63 per cent and 0.55 per cent respectively, stake in the company.
However, the two entities failed to make public announcement regarding these acquisitions as required under the Sebi (Substantial Acquisition of Shares and Takeovers) regulation.
A ‘bulk deal’ constituted of all transactions in a scrip, (on the exchange) where total quantity of shares bought/sold is more than 0.5 per cent of the number of equity shares of the company listed on the exchange.
The capital markets regulator said these entities have not only failed to comply with the provisions of SAST Regulations but have also deprived the shareholders of exit opportunity at the relevant times which has to be viewed seriously.
Accordingly, SEBI has imposed a monetary penalty of Rs 25 lakh on GMR Holdings and Bommidala...” to be paid jointly and severally.”