Sebi slaps fine on 7 entities for mkt norms breach

New Delhi: 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 one 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 or buyer and transferor or 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.