SEBI slaps Rs 2 crore penalty on four promoters of Emmsons

Mumbai: Capital markets regulator SEBI on March 25 imposed a total penalty of about Rs 2 crore on Emmsons International's four promoters for their failure to comply with various provisions of takeover regulations. In a ruling on Wednesday, the Securities and Exchange Board of India (SEBI) imposed the penalty on Anil Monga, Renu Monga, Rajesh Monga and B B Gandhi who are part of Emmsons' promoter group.   

According to the regulator's order, the promoters had failed to make mandatory public announcement with respect to acquisition of certain number of Emmsons' shares that hiked their stake in the company by 7.66 per cent on August 5, 2005. Further, they had made a delayed public announcement with respect to the conversion of 8.50 lakh warrants on February 29, 2012 which had increased the shareholding of promoter group in the company by 7.95 per cent.   

The promoters had also failed to make timely disclosures on certain transactions in company shares. Accordingly, SEBI concluded that "the noticees had failed to comply with the SAST (Substantial Acquisition of Shares and Takeovers) Regulations, 2011". It has slapped a fine total fine of about Rs 2.01 crore on the four promoters. SEBI had come across the violations while examining a letter of offer to acquire shares of the Emmsons International