Sebi slaps Rs 2-crore fine on three entities of Filatex Fashions

Sebi Wednesday slapped a fine of Rs 2 crore on former promoter and managing director of Filatex Fashions, Prabhat Setia, and two others for failing to make an open offer under takeover regulations as directed earlier by the regulator.

In an order, Sebi said the penalty is imposed on Prabhat Setia, Sangeeta Sethia and Swaminathan Rajendran.

Currently, Prabhat is company secretary and compliance officer of the firm, while Sangeeta is a non-independent woman director and Swaminathan was an accountant at the time of violation.

The case pertains to year 2007 when Sangeeta and Swaminathan had acquired 3 lakh shares of the firm.

The regulator found that Prabhat, Sangeeta, wife of promoter Prabhat, and Swaminathan, were persons acting in concert (PAC) in respect of acquisition of shares under the SAST (Substantial Acquisition of Shares and Takeovers) norms.

Due to the acquisition of shares, the promoters' holding increased by 5.8 per cent to 35.73 per cent, the increase in the holding ...