Sebi slaps Rs10-lakh fine on Karvy Financial Services for not making open offer timely

Markets regulator Sebi has levied a fine of Rs10 lakh on Karvy Financial Services Ltd for delay in making public announcement to acquire shares of Regaliaa Reality Ltd. "By not making the mandatory public announcement within the stipulated time period the Noticee has violated the statutory requirements of law and accordingly, the Noticee has to be penalised for the same," Sebi said.

Karvy Financial made public announcement for open offer with a delay of 81 days, in violation of Substantial Acquisition of Shares and Takeovers (SAST) norms. The probe found that Karvy had extended a loan amount of Rs 7 crore to Regaliaa whose promoters had pledged 55.56 per cent of the paid-up share capital in favour of Karvy, in addition to the securities for availing the loan.