An investigation was conducted by Sebi into the scrip of FIRL to ascertain whether there have been any disclosure-related violations by the company’s promoters for the February to July, 2013 period.
During the probe, it was found that the noticees as acquirers and persons acting in concert had failed to make disclosures regarding acquisition of more than two per cent shareholding of the company.
They were also required to make a public announcement of an open offer since since their shareholding went beyond a certain threshold. However, they failed to make the public announcement, as per an order.
Also, some of them being part of the promoter group failed to make disclosures with respect to change in their shareholdings and violated the prohibition of insider trading norms.
For the violations, the watchdog imposed a penalty of Rs 30 lakh on some of them payable jointly and severally besides a separate fine of Rs 1 lakh each has been imposed on 11 of them.
In March 2019, Sebi had directed some of the noticees in the case to make a public announcement of an open offer for acquiring shares of FIRL.
While imposing fine, Sebi said the regulations seek to achieve fair treatment by inter-alia mandating disclosure of timely and adequate information to enable shareholders to make an informed decision and ensuring that there is a fair and informed market in the shares of companies affected by such change in control/ shareholding.