• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Advertisement

Kolkata Feb. 22 The Securities & Exchange Board of India has imposed a penalty of Rs 20 lakh on some of the promoter group members of RDB Industries, a city-based company, which after a protracted litigation last year gained ownership of the cigarette company - New Tobacco Ltd, once a Duncan Group outfit.

In an order, issued today, Mr Amit Pradhan, adjudicating officer of SEBI, clamped the "consolidated adjudication penalty" on 5 individual promoters including Mr Sundar Lal Dugar, the Chairman and Managing director of RDB, and Khatod Investment & Finance Company, an outfit controlled by promoters, for non-disclosure of acquisition of shares in RDB.

The SEBI order mentioned that the specific acquisitions, which in its opinion violated norms, were executed during a period between 1999 and 2003. The adjudicating officer also in his order noted that the "disclosure pertaining to change in the shareholding pattern of promoters" in the letter of offer for an open offer, filed on May 17, 2006 with the regulator, for acquisition of 20 per cent stake (20 lakh shares) by some of the promoters in RDB did not comply standard norms.

The SEBI probe found out that during the period between 1999 and 2003, the promoters along with persons acting in concert had acquired RDB shares in violation of SAST regulations by not making relevant public announcements.

SEBI further noted that no shares were tendered in response to the 2006 open offer, "primarily because the market price of RDBs' share was in excess to the offer price announced".

As on December 31, 2006, the promoters jointly held 58.79 per cent in RDB.

The BSE- listed stock closed at Rs 168 on Thursday.

More Stories on : Regulatory Bodies & Rulings | Stocks | Cigarettes

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Morgan Stanley, JM Financial part ways

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line