SEBI imposed a fine of Rs 10 lakh on Karvy Financial Services, know what is the matter?

SEBI imposed a fine of Rs 10 lakh on Karvy Financial Services, know what is the matter?

Sebi said, by not making the mandatory public declaration within the stipulated time, the company concerned has violated the statutory requirements of the law and is therefore liable to be punished.

SEBI

Markets regulator SEBI has imposed a penalty of Rs 10 lakh on Karvy Financial Services Ltd for delay in making an open offer for acquisition of shares of Regalia Reality Ltd. Sebi said, by not making the mandatory public declaration within the stipulated time, the company concerned has violated the statutory requirements of the law and is therefore liable to be punished.

Karvy Financial Services made public announcement for open offer with a delay of 81 days in violation of Substantial Acquisition and Acquisition (SAST) norms of shares. The investigation found that Karvy had given a loan amount of Rs 7 crore to Regalia, whose promoters had pledged 55.56 per cent of the paid-up share capital in favor of Karvy.

What’s the matter?

Subsequently, when Regalia defaulted on the loan repayment, Karvy forfeited the pledged shares. With this, his stake in the company increased to 55.56 percent. With this the company has exceeded the limit of 25 per cent prescribed under the SAST rules.

SEBI then asked Karvy to make a public announcement for acquisition of shares in October 2016, but Karvy moved to SAT instead. Karvy was supposed to make a public announcement in 45 days after the SAT order, but it did so in August 2018 with a delay of 81 days.

In a separate order on Wednesday, SEBI has disposed of enforcement proceedings against depositories – CDSL and NSDL. The order came after SEBI conducted an inspection to find out whether the depository shares were in compliance with the conciliation obligation. Sebi, while disposing of the matter, said that the case of violation of market rules against the depository is not established.

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Important news regarding TDS claim! If the bank does not have this document of yours, then there may be a problem in getting the return.

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