Market Regulator, Securities, and Exchange Board Of India(SEBI) has imposed a fine of Rs 1 crore on turbine maker Suzlon Energy on account of violating trading norms on Friday.
The turbine maker has repeatedly failed to disclose private sensitive information required by SEBI’s listing guidelines.
Sahil Malik, an Adjudicating officer at SEBI said,
I find that the investigation did not bring out the disproportionate gain or unfair advantages to the noticee and loss caused to investors as a result of non-disclosure of truncation of order. They have failed to disclose ‘more than once’, hence it is repetitive in nature.
The noticee in the case includes Suzlon energy and its promoters Girish R. Tanti, Hemal A. Kanuga and the MD and chairman Tulsi R. Tanti. Kanuga, who is currently the secretary at Suzlon has been slapped with Rs. 5 lakh.
The trade violations made by Suzlon Energy pertain to failure in making specific corporate announcements on orders received by the company. SEBI has been looking into announcements made during the period from April 1, 2006, to March 31, 2009.
SEBI informed that around 18.8% of the order received by the company by way of various corporate announcements were either not opted for by the clients or were not executed. Even the stakeholders were not given any information about any corporate announcements.