Market

Bampsl Securities faces hefty fine by SEBI for not disclosing their shareholding

An investigation held by the market regulator, Securities and Exchange Board of India (SEBI), discovered that Bampsl Securities Limited has made three transactions that changed its shareholding of Kay Power Paper in the entity.

SEBI levied a huge fine of Rs. 5 lakhs on them for violation of disclosure regulations pertaining to the change in its shareholding status.

An enquiry about their trading in the Kay Power scrips started from June 2014. The panel submitted its findings in 3 months by August.

On each of the three occasions, Bampsl Securities either did not share the information regarding change in shareholding to the company or submitted incorrect information to the Bombay Stock Exchange.

This is a direct violation of Substantial Acquisition of Shares and Takeovers (SAST) rules, not to mention non-compliance of Prohibition of Insider (PIT) Trading norms, stated SEBI.

According to PIT and SAST guidelines, any entity is mandated to make disclosure to both company and the stock exchange where they list the company scrips.

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