Mumbai, April 6
THE Securities and Exchange Board of India (SEBI) has levied a fine of Rs 1 lakh on Sterlite Industries in connection with the preferential allotment of shares to Twinstar Holdings.
Sterlite Industries made a preferential allotment of shares on January 31, 2000 in favour of the promoter group Twinstar Holdings. Following this, the shareholding of the promoter group of Twinstar increased from 30.77 per cent of the paid-up equity capital of Sterlite to 39.87 per cent, an increase of 9.10 per cent.
SEBI viewed this as a violation of the Takeover Code.
The fine is divided as Rs 20,000 for the non-compliance of the Substantial Acquisition of Shares and Takeovers Regulations and Rs 70,000 for the delay in complying with the provisions within the time specified in the regulation.
The order was passed by an adjudicating officer of SEBI.