Mumbai: The Securities Appellate Tribunal has upheld Sebi orders against Coimbatore Flavors & Fragrances and two entities in a matter related to violation of disclosure norms.
The Securities and Exchange Board of India had in April 2013 imposed a penalty of Rs 2 lakh each on Coimbatore Flavors & Fragrances and its former promoter Benny Abraham for delay in making relevant disclosures related to the company's shareholding for the financial year ended March 31, 2012.
It has also slapped a fine of Rs 2.50 lakh on S Subashini for delay in disclosing her shareholding for fiscal year 2002-03 and 2004-05. Subsequently, the entities had approached SAT challenging Sebi’s ruling.
Dismissing their appeal, SAT in a order dated August 11 said: "Undoubtedly, the purpose of these disclosures is to bring about more transparency in affairs of the companies".
It also said that "the meager penalty" on the entities "cannot be said to be unreasonable". According to SAT timely disclosures by a company help investors take a more informed decision to invest or not to invest in a particular scrip and also facilitate Sebi to properly monitor the transactions in the capital market. Listed companies as well as promoters and certain other shareholders have to disclose their shareholding pattern to stock exchanges for a financial year within a stipulated time.
