Karuturi Global firms face Rs 40 lakh fine

Market regulator Securities and Exchange Board of India (Sebi) has imposed penalties worth Rs 40 lakh on different entities, including promoters of Karuturi Global, for alleged violations of various norms like requisite disclosure about shareholding pattern.

In seven separate orders dated July 2, Sebi has imposed penalities on Karuturi Global’ MD K S Ramakrishna and company’s 3 promoter entities — Anitha Karuturi, Rhea Holdings and Simply Class Fashions for violations of various regulations.

Besides, fines have been slapped on Karuturi Global’s director Anil T and persons acting in concert with promoters.

In one order, Sebi has imposed a penalty of Rs three lakh on Ramakrishna for indulging in insider trading activities and not making requisite disclosure regarding his shareholding.

The regulator said its probe had found that Ramakrishna as managing director of Karuturi Global had traded in shares of the company while the trading window was closed.

As per code of conduct under the insider trading norms, Ramakrishna was required to take permission from the company before trading which he failed to do.