SEBI has imposed a penalty of Rs 9 lakh on Inventure Growth and Securities for violating capital market norms with regard to transaction in the shares of GFL Financials.
SEBI has imposed a penalty of Rs 9 lakh on Inventure Growth and Securities for violating capital market norms with regard to transaction in the shares of GFL Financials.
The Securities and Exchange Board of India (SEBI) had conducted an investigation in the matter of trading activities of certain entities in the scrip of GFL for the period from September 3, 2012 to May 15, 2013. As per SEBI’s findings, there were 17 off-market transactions between 12 suspected entities including Inventure.
Inventure had received 8 lakh shares of GFL from one Naresh Shah in off-market transactions on March 25, 2013. For the said transactions, no consideration was paid, as required to be done as per spot delivery contract prescribed under the Securities Contracts (Regulation) Act (SCRA).
It was alleged that Inventure did not pay the consideration towards the off-market transactions within the period specified for spot delivery contracts and hence violated the SCRA. Shah had a debit balance of Rs 37.39 lakh on March 25, 2013 with Inventure, as per the order. SEBI said that owing to outstanding debt, Shah had transferred shares to Inventure which explains transfer of approximately 1.27 lakh shares and not of 6.73 lakh shares.
The regulator said the allegation of violation of SCRA by Inventure “stands established” only for 6.73 lakh shares of GFL. The shares received by Inventure represented 5.33 per cent of the total shares of GFL.
Since Inventure’s holding crossed 5 per cent of the total number of the shares of GFL, it was required to make relevant disclosures to the company and stock exchange in terms of PIT (Prohibition of Insider Trading) Regulations and SAST (Substantial Acquisitions of Shares and Takeovers) Regulations. However, Inventure did not make any disclosure. For the violations, SEBI has imposed a total penalty of Rs 9 lakh on Inventure.
