Market regulator Sebi has settled the case against one Meenakshi Sud after she made a payment of about Rs 7.24 lakh for allegedly not making the requisite disclosures regarding her shareholding in SR Industries Ltd.
Securities and Exchange Board of India (Sebi) said that it is settling the matter against Sud, " without admitting or denying the guilt on the part of the Notice (Sud) to the finding of fact or conclusion of law ".
The regulator had observed that while trading in the scrip of SR Industries through trading member LSE Securities, Sud purchased nearly 7.52 lakh shares amounting to 5.98 per cent stake of the company and sold 24,726 shares representing 0.19 per cent shareholding.
It was alleged that as on April 8, 2011, Sud had acquired about 1.51 lakh shares of the company due to which her stake in the company increased from 4.19 per cent to 5.39 per cent.
According to the norms, as her shareholding crossed 5 per cent, she was required to make disclosures to the company and to the concerned stock exchange.
Sebi had alleged that Sud did not make the necessary disclosures.
While the adjudication proceedings were in progress, Sud made an application for consent order in June, this year.
Subsequently, she proposed settlement charges of about Rs 7.24 lakh under Sebi's consent order mechanism.
A High Powered Advisory Committee (HPAC) considered the consent terms and recommended the case for settlement on payment of the said amount.
The recommendations of HPAC were also approved by the panel of Whole Time Members of Sebi.
The consent order regarding the case was passed on December 3, 2012.