Markets regulator SEBI imposed a fine of Rs 5 lakh on Bampsl Securities for violating disclosure norms regarding the change in shareholding of Kay Power Paper. The Securities and Exchange Board of India (SEBI) conducted a probe regarding the trading in the scrip of Kay Power from June to August 2014.
The probe found that Bampsl made three transactions which resulted in changing its shareholding in the company.
However, on all occasions, Bampsl failed to disclose the change in shareholding to the company and on two occasions it made disclosures to the BSE but with wrong information and thereby violated PIT (Prohibition of Insider Trading) and SAST (Substantial Acquisition of Shares and Takeovers norms) regulations, Sebi said.
Under PIT and SAST, the entity is required to make disclosure to both company and the exchange where the scrips of company are listed.
The regulator said the entity "by not making disclosures and making disclosures having wrong information violated the provisions of PIT and SAST Regulations."