Mumbai: The regulator market has sentenced the promoter of Videocon Industries, Venugopal Dhoot and two investment companies, with a total fine of RS 75 Lakh to ensure video shares without the right disclosure to shareholders and also to enter the transaction inside.
This case is related to violations of the rules of this entity between April and September 2017.
Interestingly, orders sebi show that even though sending some notifications, Dhoot does not answer notification, also does not appear before the regulator adjudication officer for this case.
Dhoot, the main promoter of the company, also the chairman & MD company.
Two other entities named in order are Videocon Realty & Infrastructure and Electroparts (India), before Shree Dhoot Trading & Agent.
“Notification of being an inner person has executed market transactions while having unpublished price sensitive information (upsions),” said Sebi in order.
During the period of investigation by Sebi, Dena Bank, one of the lenders for Videocon, has classified its loan to the company as a non-performing asset (NPA), which in turn is expected to have a negative impact on the stock price of videocon.
Therefore this is considered as an ups.
During this period, the two promoter entities have promised their ownership in Videocon and also transferred several shares through market transactions.
Dhoot, also inner people, has been traded on video stocks, both directly and on behalf of the two companies.
Each entity has been fined Rs 25 lakh.