Market regulator Securities and Exchange Board of India (SEBI) has imposed a total penalty of Rs 2 lakh on four members of one ‘Gupta Family’, for failing to make disclosures related to their transactions in shares of Empower Industries India Ltd (EIIL).
SEBI said that the fine slapped on members of Gupta family — Om Prakash Gupta, Shakuntala Gupta, Neeru Gupta and Charu Gupta — has to be jointly paid by them.
The regulator found that the entities together had received a total of 51,000 shares or 10.20 per cent stake of EIIL, in physical form from the company’s promoter — Devang Master.
As per SEBI norms, this transaction required the Gupta family, acting in concert with each other, to disclose their shareholding to the company and to the concerned stock exchanges.
In its order issued on Monday, SEBI said, “There is nothing on record to show that the required disclosures were made by the Gupta Family to the company and to BSE”.
For the adjudication order, click >here .
The matter relates to a probe conducted by SEBI for alleged irregularities in shares of EIIL between February 16 - March 11, 2005.
The regulator found that the company’s share surged from Rs 81 to Rs 113 during 18 trading days and total trading volume stood at 2.17 lakh shares.
