Zee Media case: Sebi levies Rs 4 lakh fine on 25FPS Media for disclosure lapses

The order came after Sebi conducted an examination in the scrip of Zee Media Corporation for the period April 2019-2020.

Pursuant to the probe, it was observed that there were non-compliances of provisions of Prohibition of Insider Trading (PIT) rules and Substantial Acquisition of Shares and Takeovers (SAST) norms by 25FPS Media Pvt Ltd.

In its order, Sebi said there were 21 instances of delayed disclosures by 25FPS Media, out of which in one instance, the shares were sold through the exchange and in 20 instances, there was invocation of pledged shares by the lenders with whom shares of ZMCL were pledged by the noticee, which resulted in change in its shareholding in ZMCL.

Under the SAST rules, 25FPS Media was required to disclose pledged and unpledged transactions to the company and stock exchanges within two working days of the disposal (pledged) /acquisition (unpledged) of shares exceeding 2 per cent of total shareholding or voting rights in the company.

The noticee was required to make disclosures to ZMCL for each of the 21 transactions under the PIT norms. However, it failed to make the disclosures.

The regulator also noted that in 13 instances, there was a change in the noticee’s shareholding in ZMCL which exceeded 2 per cent.

Further, it had made delayed disclosures in respect of sale/invocation of pledge of its shares to ZMCL and to the exchanges, thereby violating the norms.