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SEBI issues fine of ₹9 lakh on Zee Group for shareholding disclosure lapses

The regulator has levied a fine of ₹6 lakh on 25FPS Media Private Limited and ₹3 lakh on Zee Media Corporation Ltd (ZMCL)

The regulator has levied a fine of ₹6 lakh on 25FPS Media Private Limited and ₹3 lakh on Zee Media Corporation Ltd (ZMCL)  

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“The company conveniently kept the general investors in dark regarding the change in the shareholding of one of the promoters,” the body noted.

Markets regulator Securities and Exchange Board of India (SEBI) on Thursday imposed a fine totalling ₹9 lakh on Zee Media Corporation and its promoter entity 25FPS Media for shareholding disclosure lapses.

The regulator has levied a fine of ₹6 lakh on 25FPS Media Private Limited and ₹3 lakh on Zee Media Corporation Ltd (ZMCL), SEBI said in an order.

The order comes after SEBI received a reference from Zee Media Corporation, wherein it informed the regulator regarding non-compliance of PIT (Prohibition of Insider Trading) Regulations by 25FPS during the period ranging from April 8 to April 23, 2019.

Following this, the regulator conducted examination in the scrip of ZMCL from April 8, 2019 to April 26, 2019 to ascertain whether there was any disclosure violation of PIT norms and SAST (Substantial Acquisition of Shares and Takeovers) Regulations by 25FPS and/or ZMCL.

During the examination, the regulator observed that IFCI Ltd had invoked pledge in respect of certain equity shares of the company pledged by 25FPS. The shareholding of 25FPS in ZMCL was continuously decreasing by virtue of invocation of pledge by IFCI during the period.

It further said that 25FPS was required to disclose details of such change in its shareholding within stipulated timeframe. Besides, ZMCL was required to notify the exchanges regarding the particulars of trades within two trading days of it “becoming aware of the same“.

“By not making the relevant disclosures on time, both the noticees have conveniently kept the general investors in dark regarding the change in the shareholding of one of the promoters,” SEBI said.

The entities have not complied with the relevant provisions of PIT Regulations and SAST norms, it noted.

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Printable version | Jan 26, 2020 10:28:43 PM | https://www.thehindu.com/business/Industry/sebi-issues-fine-of-9-lakh-on-zee-group-for-shareholding-disclosure-lapses/article30577967.ece

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