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SEBI fines promoters of Mahamaya Steel Rs 10 lakh for disclosure lapses

SEBI fines promoters of Mahamaya Steel Rs 10 lakh for disclosure lapses

Markets regulator SEBI imposed a total fine of Rs 10 lakh on five promoter group members of Chhattisgarh-based Mahamaya Steel for failing to comply with disclosure requirements regarding the shares of the company.

Markets regulator SEBI imposed a total fine of Rs 10 lakh on five promoter group members of Chhattisgarh-based Mahamaya Steel on Friday for failing to comply with disclosure requirements regarding the shares of the company.

In a five separate but similarly worded orders, the regulator imposed fine on Anand Kumar Agrawal, Asha Agrawal, Neha Agrawal, Nitin Agrawal, Ravi Agrawal for violating PIT (Prohibition of Insider Trading) regulations.

Anand Kumar Agrawal is the promoter of the firm and Asha Agrawal is wife of Anand while Neha, Nitin and Ravi are children of the promoter Anand.

Securities and Exchange Board of India (SEBI) said, during May-August period, all members of promoter group except Ravi Agrawal sold shares on several occasions in 2016 exceeding the value of Rs 10 lakh.

In May, Ravi Agrawal bought shares on one occasion which exceeded Rs 10 lakh in value, SEBI said.

Under PIT norms, promoter and director of company is required to disclose the transaction to the company within two trading days if the value of securities traded is in excess of Rs 10 lakh.

However, they failed to do so, the regulator noted.

"The provision clearly shows that intent of the legislation. It is not only the promoters, but all those who are related to them may be privy to unpublished price sensitive information and are required to disclose the change in their shareholding to the public," SEBI said

Accordingly, SEBI fined Anand Kumar Agrawal Rs 5 lakh, Asha Agrawal Rs 2 lakh and Neha Agrawal, Nitin Agrawal, Ravi Agrawal Rs 1 lakh each.