Capital markets regulator, Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 4.5 lakh on Rajlaxmi Industries for not complying with the provisions of 'Takeover Regulations'. According to SEBI, the company had not made the disclosure to the exchange within the stipulated time for a total of 5 occasions during the years 2001, 2002, 2004, 2006 and 2007 under Regulation 8(3) of the Takeover Regulations and once in 2001 under Regulation 7(3) of the Takeover Regulations.
As per SEBI norms, the company required to make yearly disclosure, with respect to change in shareholding of promoters or persons having control over the company, within 30 days from the financial year ending March 31, to the stock exchanges.
Besides, the company has also failed to make disclosures to bourses within seven days with respect to the aggregate number of shares held by each who had acquired shares.
Rajlaxmi Industries is engaged in trading of textiles. Over the past two and half decades the company has established itself as reliable name in textile trading.