E-Malt.com News article: India: United Breweries fined for not making disclosures regarding creation and invocation of pledge transactions in shares

Capital markets regulator Sebi on November 27 slapped a fine of Rs 15 lakh on United Breweries (Holding) Ltd for not making disclosures regarding creation and invocation of certain pledge transactions in shares of United Spirits, Daily News & Analysis reported.

The regulator said United Breweries Holding, as promoter of United Spirits, did not make disclosures in total four transactions related to 'invocation of pledge' that took place on February 15, 2012 and March 24, 26 of 2012.

It also failed to make disclosures regarding the 'creation of pledges' that took place on March 26, 2012.

Accordingly, Securities and Exchange Board of India (Sebi) has imposed "a penalty of Rs 15 lakh... on United Breweries (Holding) Ltd."

However, the regulator has let off Kingfisher Finvest India without levying any penalty as the company had made the disclosure pertaining to release of 10,000 pledge shares with a delay of just one day.

Further, efforts were made by the company to dispatch the required disclosures to all the three stock exchanges before the due date. Even though it reached to NSE and BSE with mere one day delay, but it reached to Bangalore stock exchange on the due date itself.

"... no repetitive nature of irregularities were shown on records to have been committed by Kingfisher Finvest," Sebi said.

The capital markets watchdog said it is 'not a fit case' for making the firm liable for imposition of monetary penalty.


02 December, 2015