Markets regulator Sebi says it has settled a case with the promoters of Lambodhara Textiles for alleged violations of takeover regulations on payment of Rs 55.25 lakh as settlement fee. It was alleged that the promoters of the Lambodhara Textiles violated Sebi SAST (Substantial Acquisition of Shares and Takeovers) Regulations 1997 by acquiring 68,077 shares of the company through off market mode.
While one of the promoters, Vimala Radhakrishnan, had acquired 5,500 shares of the company in June 2009 through off market mode, another promoter, Giulia Bosco had purchased 62,577 shares in August 2010 through the same method. It was also alleged that the two promoters had acted in concert with company’s other promoters and Strike Right Integrated Services.
After finding the promoters had violated norms, Sebi initiated adjudication proceedings. While the proceedings were in process, the entities proposed a settlement through the settlement mechanism upon payment of Rs 55.25 lakh as settlement fee. Thereafter, Sebi’s High Powered Advisory Committee (HPAC) recommended that the matter may be settled on the payment of the amount offered. This was also approved by the panel of whole-time members of Sebi, following which the entities remitted the amount in October.
Sebi said enforcement actions including commencing or reopening of proceedings, could be initiated if any representation made by the firm is found to be false. Under the settlement mechanism, entities can seek to settle cases with the regulator after payment of certain charges and other expenses.