SEBI Penalizes Company Promoter for Non-Compliance with Takeover Regulations

SEBI Imposes Penalty on Promoter for Regulatory Non-Compliance

Team Finance Saathi

24/Mar/2025

What's covered under the Article:

SEBI issued a settlement order against promoter Mr. Rajkumar Loyalka for regulatory non-compliance.
The violation involved a delay in filing disclosures under SEBI's takeover regulations.
The promoter paid a penalty of Rs. 3,34,687 via RTGS, with no financial impact on the company.

The Securities and Exchange Board of India (SEBI) has taken regulatory action against Mr. Rajkumar Loyalka, a promoter of a listed company, for a violation of Regulation 10(5) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The regulatory body found that the promoter delayed filing the required disclosure related to the acquisition of shares, which resulted in a penalty.

SEBI’s Regulatory Action

On 24th March 2025, SEBI issued a Settlement Order regarding the non-compliance. The violation pertained to an 11-day delay in submitting the necessary disclosure under takeover regulations. SEBI imposed a penalty of Rs. 3,34,687, which was paid on 10th February 2025 via RTGS transaction (UTR No: NRTGSIPUNBR52025021018272174).

Impact of the Penalty

Despite the regulatory action, the company has stated that this penalty will have no financial, operational, or strategic impact on its business activities. The compliance breach was related to an individual promoter's action and not to the company’s overall governance or operations.

Due Date for Payment

SEBI directed that the penalty be paid within 30 calendar days from the receipt of the notice, making 26th February 2025 the deadline. The promoter complied and cleared the penalty before the due date.

Regulatory Compliance and SEBI's Role

SEBI has been actively monitoring and enforcing compliance to ensure market transparency and investor protection. This penalty reaffirms SEBI’s stance on strict adherence to disclosure norms under takeover regulations.

Importance of Compliance for Promoters

This case highlights the necessity for company promoters and investors to comply with SEBI’s disclosure norms. Any delay or oversight can lead to penalties and regulatory scrutiny, affecting investor confidence and market reputation.

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This article serves as a critical reminder for promoters to ensure timely compliance with SEBI regulations and avoid financial penalties.

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