Sebi imposes Rs 22 lakh fine in Greenearth Resources case

Mumbai: Market regulator Sebi has slapped a fine of Rs 22 lakh on four entities for allegedly failing to disclose shareholding details in Greenearth Resources and Projects within the stipulated time frame. The Securities and Exchange Board of India (Sebi), in an order dated May 30, imposed a penalty of Rs 9 lakh on Shri Hanuman Investments, Rs 7 lakh on Anarcon Resources, Rs 4 lakh on Rishiraj Agarwal and Rs 2 lakh on Ratanlal Tamakhuwala for violating Substantial Acquisition of Shares and Takeovers (SAST) regulations.

The shareholding of the promoter group reduced from 65.56 per cent to 20.59 per cent after the sale of shares by the four entities during 2009-10. They failed to make the necessary disclosures within two days of selling the shares. Shri Hanuman had sold a 16.21 per cent stake in Greenearth Resources and Projects, Anarcon (13.39 per cent), Rishiraj (9.85 per cent) and Ratanlal (2.93 per cent).

The four entities individually sold shares representing more than 2 per cent of the share capital of Greenearth Resources and it was their responsibility to make the disclosures within the prescribed time limit, Sebi noted. Separately, the regulator imposed a penalty of Rs 5 lakh each on Ashlesh Gunvantbhai Shah and Virendrakumar Jayantilal Patel for failing to make disclosures about disposing their shareholding in Parichay Investments.

"The noticee disposed substantial shares of the company but failed to make disclosures," Sebi said in two separate orders. It noted that Shah had sold a 6.2 per cent stake in Parichay Investments and did not disclose the transaction to the BSE and company within the prescribed time limit. Patel sold a 5.39 per cent stake and failed to comply with the norms.