July 14: The Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 12 lakh on Kwality Ltd and its five promoters, on charges of violating disclosure norms. Kwality is into processing, manufacturing and trading of milk, milk products and dairy products.
A report detailing the Sebi order said that Kwalitya and its five promoters – Sanjay Dhingra, Gulshan Dhingra, Naresh Dhingra, Krishan Dhingra and Kanika Dhingra – have been slapped with the penalty.
The order comes following an investigation conducted by the market regulator into the share trading of Kwality between December 2009 and December 2011, which found that there was a change in the number of promoters and their shareholdings for the quarter ended September, 2011. It was found that during the quarter, Kanika Dhingra was included in the promoter category and he acquired 5.24 crore shares or 25.84 per cent of the total capital from other promoter. Dhingra was required to disclose acquisition of shares to the company and to the stock exchanges under SAST (Substantial Acquisition of Shares and Takeovers) norms.
The report added that the Sebi order said that the other four promoters were also required to make various disclosures including a change exceeding 2 per cent of total share capital of the firm to BSE and NSE under PIT (Prohibition of Insider Trading) regulations. However, no disclosure regarding the change in shareholding was ever made to the stock exchanges, Sebi pointed out.
Kwality Ltd was found to have violated SAST norms by not making disclosures regarding the acquisition of shares.