The regulator has dropped charges against designated depository participant (DDP)
.
It was found that the FPIs India Max Investment Fund and Grovsnor Investment Fund were in non-compliance with the relevant provisions of FPI Regulations relating to breach of investment limits since August 16, 2017, to August 01, 2019, as well as failed to report relevant information as required under the operational guidelines.
They also “failed to observe high standards of professionalism and competence by failing to provide correct ownership information, and failed to abide by provisions of the FPI Regulations and operational guidelines in non-compliance of relevant clauses of the code of conduct,” Sebi said.
It was found that the funds breached the 10 per cent investment limit in the scrip of STI India Ltd after their holdings were required to be clubbed as they were part of the same investor group, as per the requirement of Sebi circulars.
For the violations, Sebi has levied a fine of Rs 10 lakh on the funds, to be paid jointly and severally.
The charge against ICICI Bank was that it allegedly failed to intimate to Sebi that the two FPIs belonged to the same investor group on account of having common beneficial ownership, and that they had delayed submitting this information as required under the relevant Sebi circulars.
However, Sebi agreed with the lender that the operational guidelines do not specify or require DDPs to seek out information from FPIs or otherwise enquire beyond what is reported by them.
“Hence, there was no question of any delay in reporting of change to Sebi,” the regulator said.
While dropping charges against the bank, Sebi added that there was no way for ICICI Bank to determine that there had been a delay in informing common beneficial ownership of the funds. ICICI Bank brought it to the notice of NSDL and Sebi immediately upon confirming that there was common beneficial ownership of the funds.
In a separate order, the regulator has slapped a total fine of Rs 22 lakh on seven entities and Rs 8 lakh on three entities for disclosure lapses with respect to change in their shareholding in Jyoti Ltd.
Sebi, in two separate orders noted that the two groups, acting as persons acting in concert (PACs) failed to disclose the change in their shareholding in Jyoti Ltd to the exchanges as well as to the company as required under Substantial Acquisition of Shares and Takeovers (SAST) Regulations.
Besides, Gandiv Investment Pvt Ltd is facing a fine of Rs 5 lakh for off-market transfer of Jyoti’s shares without payment of consideration.
Sebi noted that there were off-market transactions between 5 suspected entities and Gandiv Investment was among them.
Separately, Topwell Properties P Ltd., Shivkhori Construction P Ltd., Limestone Properties P Ltd. and Comfort Dealcom P Ltd are facing a fine of Rs 5 lakh for manipulation in the scrip price of Mystic Electronics Ltd by repeatedly executing the trades above the last traded price during the period March 19, 2013 to March31, 2015.
The entities are jointly and severally liable to pay the penalty.
