Market regulator Securities and Exchange Board of India (SEBI) has directed four promoter entities of Khaitan Electricals to pay “consideration amount” with interest to its shareholders for failing to disclose acquisition of shares in the company.
SEBI has also directed the four entities, including two individuals, to make a public announcement regarding purchase of company’s shares within 45 days.
The order, issued on December 31, was against Sunil Krishan Khaitan, Krishan Khaitan, Khaitan Lefin Ltd (KLL) and the Orientale Mercantile Company Ltd (OMCL). “The noticees, Sunil Krishan Khaitan, Krishan Khaitan, Khaitan Lefin and The Orientale Mercantile Company shall make a combined public announcement to acquire shares of the target company, Khaitan Electricals Ltd... within a period of 45 days from the date of this order,” SEBI said.
It was found that the entities had not made public announcement regarding purchase of shares in the company even as their shareholding increased beyond the threshold limit of 15 per cent, in 2007. Further, the regulator said the entities “shall, along with consideration amount, pay interest at the rate of 10 per cent per annum, from June 16, 2007, to the date of payment of consideration...”.