Kolkata, January 28, 2025 – Zenith Exports Limited (NSE: ZENITHEXPO, BSE: 512553) has disclosed that its promoter, Mr. Rajkumar Loyalka, has been fined ₹3.34 lakh by SEBI for failing to file a timely disclosure under Regulation 10(5) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The Securities and Exchange Board of India (SEBI) issued the penalty via a settlement notice dated January 22, 2025.
Key Details of the SEBI Notice
| Particulars | Details |
|---|---|
| Regulator | Securities and Exchange Board of India (SEBI) |
| Violation | Late filing of share acquisition disclosure under Regulation 10(5) of SAST Regulations, 2011 |
| Promoter Involved | Rajkumar Loyalka |
| Shares Transferred | On March 8, 2024 |
| Deadline for Disclosure | March 21, 2024 |
| Actual Filing Date | April 1, 2024 (delay of 11 days) |
| Settlement Amount | ₹3,34,687 |
| Payment Deadline | February 26, 2025 |
Background of the Violation
- SEBI observed that Mr. Loyalka transferred shares of Zenith Exports on March 8, 2024, triggering a mandatory pre-transaction disclosure under Regulation 10(5).
- The disclosure was filed 11 days late (April 1, 2024), violating SEBI’s rules on timely reporting of shareholding changes.
- SEBI issued a notice for settlement under Chapter-VI of SEBI (Settlement Proceedings) Regulations, 2018, offering Mr. Loyalka an opportunity to pay the settlement amount and close the case.
Impact on Zenith Exports
- No Financial or Operational Impact: The company stated that this regulatory issue does not affect its operations, financial health, or shareholder value.
- Compliance Assurance: Zenith Exports reaffirmed its commitment to regulatory compliance, ensuring timely disclosures in the future.
Company’s Official Statement
Anita Kumari Gupta, Company Secretary & Compliance Officer Zenith Exports, stated:"We acknowledge SEBI’s notice regarding the delayed filing by our promoter, Mr. Rajkumar Loyalka. The company remains committed to ensuring strict compliance with SEBI regulations and will take all necessary measures to prevent future lapses."
Investor Takeaways
- The fine does not impact Zenith Exports' financial performance but highlights the importance of regulatory compliance for promoters.
- Investors should monitor corporate governance practices in companies where promoter actions could trigger regulatory scrutiny.