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Updated on: Tuesday, August 10, 2021, 03:10 PM IST

Sebi fines 7 entities for violations related to dealing in Videocon Industries shares

PTI
Sebi had conducted an investigation into the trading of the firm's shares during April-September 2017 period |

Sebi had conducted an investigation into the trading of the firm's shares during April-September 2017 period |

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Sebi has imposed monetary penalties on seven entities for certain violations of market norms with respect to settlement of spot transactions related to shares of Videocon Industries Ltd.

The entities -- Acuity Merchants Pvt Ltd, Coastal Fertilisers Ltd, Richhold Properties Pvt Ltd, Kaberi Goods Pvt Ltd, Invorex Vincom Pvt Ltd, Akansha Commodities Pvt Ltd and Godavari Commercial services Pvt Ltd -- have been slapped with a fine of Rs 1 lakh each, according to an order dated August 6.

The watchdog had conducted an investigation into the trading of the firm''s shares during April-September 2017 period.

There were some transactions between promoters of Videocon and Acuity Merchants, and those were plain off-market transfers, the regulator said.

Further, Acuity Merchants had transferred the shares through off-market transfers to the other six entities.

As per Sebi, the entities being transferee/ buyer and transferor/seller have not paid or received consideration for off-market receipt and transfer of shares which is not in conformity with market norms.

"The conduct of the parties and nature of the transactions establishes that the noticees entered into a transaction in off-market, without receipt/ payment of consideration, which is in contravention of the provisions relating to spot delivery contracts," Sebi said, adding that the transactions were illegal, void and a nullity.

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Published on: Tuesday, August 10, 2021, 03:10 PM IST
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