The Securities and Exchange Board of India (SEBI) has fined GHCL Rs 1.25 crore for not disclosing to investors the encumbrance of around 48% of shares held by promoters and promoter group of GHCL.
As per allegations, 86,70,800 shares of GHCL were encumbered. However, the company disclosed that only 15,60,000 scrips were encumbered in the three months ended March 2009 and 16,05,000 in the quarters ended June 2009, September 2009, December 2009, March 2010 and June 2010.
GHCL is a leading producer of synthetic soda ash in India with an installed capacity of 8.5 lakh tonnes Per Annum (TPA) located in Gujarat. Over the years, it has diversified into yarn and home textile products. While its yarn division, with an installed capacity of 1,48,280 spindles, is located in Tamil Nadu, the home textile plant with a weaving capacity of 25,000 meter per day and processing capacity of 1 lakh meter per day for home-textiles (bed sheets and curtain panels) is located at Vapi (Gujarat).
