Friday, 3 October 2014

SEBI fines Rs 20 lakh on 17 entities in Ahlcon case


The case relates to 5.45 per cent stake acquisition by Ahlcon Parenterals' promoters together with persons acting in concert (PACs) in the firm during 2009-10.
  
SEBI found that 17 entities, which include 14 individuals and three firms -- Ahluwalia Builders & Development Group, Tidal Securities and Capricon Industrials -- were persons acting in concert with promoter group of the company.

According the market regulator the PACs along with the promoter group were required to make a public announcement as there stake acquisition in the company as they had crossed the 5 percent threshold limit.
  
Consequently, in an order dated October 1, SEBI has "imposed a penalty of Rs 20 lakh" on the 17 entities which were acting in concert with the company's promoter group.

The fine has to be paid "jointly and severally" by the 17 entities.

Under the regulator's takeover norms, entities can acquire up to 5 percent shares from the open market in a company without making a public announcement.

However, the moment 5 percent shares are acquired any additional stake can be brought only after making a public announcement

"The promoter group during the period January 2009 to March 2010 had acquired 5.45 percent shares in the target company," SEBI said in the order.

"Thus, they had crossed the permissible limit of 5 percent and had to make a public announcement to acquire any additional share in terms of... Takeover Regulations which they had failed to do," it added.

Besides these 17 entities, SEBI observed that another PAC, Madan Gopal, related to this case, had expired and therefore the current proceedings against him are abated.

The 14 individuals penalised are -- Bikramjit Ahluwalia, Ram Piari, Pushpa Rani, Raman Pal, Rohini S Ahluwalia, Rohini Ahluwalia, Shobhit Uppal, Vikas Ahluwalia, Rachna Uppal, Sudarshan Walia, Sudarshan Ahluwalia, Mukta Ahluwalia, Santosh Ahluwalia and Raj Kumar Ahluwalia.

Sebi had come across the violation while examining the letter of offer by B Braun Singapore Pte Ltd along with B Braun Melsungen AG to acquire 26 percent shares of the Ahlcon Parenterals.

Read more: News in Hindi and Newspaper

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