Promoter shareholding was being misrepresented by many companies including CCCL and PNBFIL, hence SEBI has taken this strict step.
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Markets regulator SEBI imposed a total penalty of Rs 35.67 crore on several companies including PNB Finance & Industries Limited, Camac Commercial Company Limited and promoters Sameer Jain and Meera Jain and has also been banned from the securities market. Apart from this, Sameer Jain and Meera Jain have also been barred from holding any key position or joining any public company. These restrictions will remain in force till both the companies comply with the minimum public shareholding requirement under SEBI norms as per two separate orders.
According to SEBI, both the companies did not make adequate disclosures about their organizer units. Calcutta Stock Exchange Listed companies have also been instructed to obtain complete details about their promoters. Sameer Jain was the Vice-Chairman and Managing Director of Bennett Coleman & Company Limited (BCCL) at the relevant time and Meera Jain was a Director in BCCL.
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SEBI imposed this much fine
In the case of PNB Finance and Industries Ltd (PNBFIL), 6 companies have been barred from the securities market. According to the 96-page order, they are Sameer Jain, Meera Jain, Ashok Viniyog Limited, Aarti Viniyog Limited, Camac Commercial Company Limited and Combine Holding Limited. According to sources, a fine of Rs 12 crore has been imposed on PNBFIL, along with Rs 1.41 crore fine on Sameer Jain, Meera Jain, Ashok Viniyog Ltd, Aarti Viniyog Ltd, Camac Commercial Company Ltd and Combine Holding Ltd.
At the same time, a fine of Rs 11 crore has been imposed on CCCL and Rs 1.41 crore on Sameer Jain and Meera Jain. Apart from this, a fine of Rs 20 lakh each has been imposed on Ashok Viniyog Limited, Aarti Viniyog Limited, PNB Finance and Industries Limited, Combine Holding Limited and Punjab Mercantile and Traders Limited.
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These companies do not have any promoter
Sebi, in its order against CCCL and PNBFIL, said that the entities have jointly misrepresented the company as a professionally run company with no promoters. SEBI receives complaints of misrepresentation of promoter shareholding by certain companies such as Arth Udyog Ltd., Ashok Viniyog Ltd., Ashok Marketing Ltd. as well as non-adherence to minimum public shareholding norms including non-adherence to various provisions of security laws This order has come after.