<p>Capital markets regulator Sebi on Monday imposed Rs 5 lakh fine on Karvy Financial Services Ltd for making requisite disclosures after a delay of nearly seven years.</p>.<p>Sebi found that three promoters of Regalia Realty in order to obtain a project loan for the company created encumbrance on the shares held by them by way of a pledge in favour of Karvy Financial Services to secure repayment of the loan.</p>.<p>Karvy Financial Services was required to disclose the creation of pledge to the company as well as the BSE in accordance with the market norms.</p>.<p>Thereafter, the pledge created over the shares of the promoters of the company was invoked by Karvy Financial Services and subsequently, shares of the firm amounting to 55.56% of its total share capital were transferred in its favour.</p>.<p>“By virtue of the pledge being invoked, noticee shareholding in Regalia Realty increased from 0% to 55.56% and the said disclosure under Regulation 29(1) of SAST Regulation and Regulation 13(1) of PIT Regulation was made on December 26, 2018, to company and stock exchange i.e. after a delay of 6 years and 11 months,” Sebi said.</p>.<p>The regulator thus imposed the monetary penalty on Karvy Financial Services for violating Substantial Acquisition of Shares and Takeovers (SAST) norms and Prohibition of Insider Trading (PIT) regulations.</p>.<p>Besides, through two separate orders, Sebi levied a fine of Rs 2 lakh each on Divine Waters Pvt Ltd and Sonia Finvest Pvt Ltd for failing to make timely disclosures with respect to reduction in their shareholding in Secure Earth Technologies Ltd. </p>
<p>Capital markets regulator Sebi on Monday imposed Rs 5 lakh fine on Karvy Financial Services Ltd for making requisite disclosures after a delay of nearly seven years.</p>.<p>Sebi found that three promoters of Regalia Realty in order to obtain a project loan for the company created encumbrance on the shares held by them by way of a pledge in favour of Karvy Financial Services to secure repayment of the loan.</p>.<p>Karvy Financial Services was required to disclose the creation of pledge to the company as well as the BSE in accordance with the market norms.</p>.<p>Thereafter, the pledge created over the shares of the promoters of the company was invoked by Karvy Financial Services and subsequently, shares of the firm amounting to 55.56% of its total share capital were transferred in its favour.</p>.<p>“By virtue of the pledge being invoked, noticee shareholding in Regalia Realty increased from 0% to 55.56% and the said disclosure under Regulation 29(1) of SAST Regulation and Regulation 13(1) of PIT Regulation was made on December 26, 2018, to company and stock exchange i.e. after a delay of 6 years and 11 months,” Sebi said.</p>.<p>The regulator thus imposed the monetary penalty on Karvy Financial Services for violating Substantial Acquisition of Shares and Takeovers (SAST) norms and Prohibition of Insider Trading (PIT) regulations.</p>.<p>Besides, through two separate orders, Sebi levied a fine of Rs 2 lakh each on Divine Waters Pvt Ltd and Sonia Finvest Pvt Ltd for failing to make timely disclosures with respect to reduction in their shareholding in Secure Earth Technologies Ltd. </p>