Sebi fines Rs 9 lakh on Zee Group for disclosure lapses

Sebi fines Rs 9 lakh on Zee Group for shareholding disclosure lapses

Markets regulator Sebi on Thursday imposed a fine totalling Rs 9 lakh on Zee Media Corporation and its promoter entity 25FPS Media for shareholding disclosure lapses.

The regulator has levied a fine of Rs 6 lakh on 25FPS Media Private Limited and Rs 3 lakh on Zee Media Corporation Ltd (ZMCL), Securities and Exchange Board of India (Sebi) said in an order.

The order comes after Sebi received a reference from Zee Media Corporation, wherein it informed the regulator regarding non-compliance of PIT (Prohibition of Insider Trading) Regulations by 25FPS during the period April 8 to April 23, 2019.

Following this, the regulator conducted an examination in the scrip of ZMCL from April 8, 2019, to April 26, 2019, to ascertain whether there was any disclosure violation of PIT norms and SAST (Substantial Acquisition of Shares and Takeovers) Regulations by 25FPS and/or ZMCL.

During the examination, the regulator observed that IFCI Ltd had invoked pledges in respect of certain equity shares of the company pledged by 25FPS.

The shareholding of 25FPS in ZMCL was continuously decreasing by virtue of an invocation of pledge by IFCI during the period.

It further said that 25FPS was required to disclose details of such a change in its shareholding within the stipulated timeframe. Besides, ZMCL was required to notify the exchanges regarding the particulars of trades within two trading days of it "becoming aware of the same".

"By not making the relevant disclosures on time, both the noticees have conveniently kept the general investors in dark regarding the change in the shareholding of one of the promoters," Sebi said.

The entities have not complied with the relevant provisions of PIT Regulations and SAST norms, it noted.

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