Markets regulator Sebi today imposed a fine totalling Rs 10 lakh on Omkar Overseas Ltd and its former officials for the delay in disclosure of the company's quarterly result, among others, to stock exchanges.
It has levied a fine of Rs 5 lakh on Omkar Overseas, besides, a collective fine of Rs 5 lakh on its then CMD Champalal Gopiram Agarwal, director Shankarlal Gopiram Agarwal, and compliance officer Subhashchandra Omkarmal Agarwal, the regulator said in an order.
A probe conducted by Sebi found that the firm had failed to disclose its quarterly results within 45 days from the end of the quarter for three months ended September 2009, December 2009, March 2010 and June 2010 to BSE.
Further, the firm had not given prior intimation to the bourse about its board meeting to be held on October 30, 2009, and January 30, 2010, in which September and December 2009 financial results were being considered and did not inform outcome of such meetings.
By this, the firm has violated Listing Agreement.
According to Sebi, the entities have not informed the exchange about the price sensitive information on time (quarterly financial results on continuous basis).
Further, they did not keep the trading window closed before making the financial results of quarter ended September 2009 and December 2009 public which was on November 19, 2009 and July 30, 2010 respectively
By doing so, they violated code of conduct specified under PIT (Prohibition of Insider Trading ) Regulations.
"Subhashchandra being the compliance officer was responsible for setting forth policies, procedures of the company and adherence to the rules and implementation of the code of conduct under the overall supervision of the board of the listed company
"Champalal, being the chairman and managing director, and Shankarlal being the director… and thereby noticees– Omkar Overseas, Subashchandra, Champalal and Shankarlal — have violated the… the Code of Conduct specified …. in the PIT Regulations," Sebi noted.