Free Press Journal

Shareholding disclosure lapses: 7 entities settles probe with SEBI

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New Delhi: As many as seven entities have settled a probe by markets regulator Sebi into an alleged delay in making shareholding disclosure after paying over Rs 5 lakh towards settlement fee. These entities are — Moderate Leasing & Capital Services, A to Z Holdings, Longwell Investments, SBEC Systems (India) Ltd, Umesh Kumar Modi, Kumkum Modi and Jayesh Modi.

Sebi agreed to settle proposed adjudication proceedings in the case, for alleged delay in compliance of SAST (Substantial Acquisition of Shares and Takeovers) as well as PIT (Prohibition of Insider Trading) regulations after it was approached by these seven entities with a plea under the settlement regulations.

“The proposed adjudication proceedings for the alleged default and the proceedings that could have been initiated for the defaults…are settled,” the regulator said in a settlement order dated August 16, adding that it would not initiate any enforcement action against the entities for the defaults.


Under the settlement, an entity is allowed to settle charges by paying a penalty without admission or denial of guilt.

According to the regulator, the entities had proposed to settle, through a settlement order, the proposed adjudication proceedings for the delayed compliance of SAST as well as PIT regulations. The entities sought to settle the proceedings for “delay in making disclosure of change in shareholding of Moderate Leasing & Capital Services along with PACs (persons acting in concert) and A to Z Holding”.

Pending adjudication proceedings, the entities approached Sebi to settle the case on payment of settlement charges.

Thereafter, Sebi’s high powered advisory committee recommended the case for settlement on the payment of fee. This was also approved by the regulator’s panel of whole-time members, following which they remitted Rs 5.17 lakh. Accordingly, the Securities and Exchange Board of India has disposed of the adjudication proceedings initiated against the entities.