SEBI penalizes Embassy Property Development Pvt Ltd
New Delhi: SEBI has penalized Embassy Property Development Pvt Ltd Rs 10 lakh for failing to cut non public shareholding in Mac Charles (India) Ltd to 75 percent or lower in the timeline stipulated in law, as per a news report by PTI.
The market regular noted that Embassy Property Development acquired as much as 73.41 percent shares of Mac Charles through share purchase deal on 7 February 2017. Its stake in Mac Charles later jumped to 79.77 percent as a result of the compulsory open offer. However, Embassy Property Development failed to cut its shareholding to 75 percent or lower which is mandated under SAST Regulations.
"Noticee (Embassy Property Development) has failed to comply with the MPS (minimum public shareholding) requirements and that noticee was required to bring down the non-public shareholding to 75 per cent or below within twelve months from date of change in shareholding i.e. February 7, 2017, and thereby to ensure compliance with...the SAST Regulation," Sebi said in its order.