Sebi disposes of case against Larsen & Toubro

Regulator Sebi has disposed of a case related to disclosure lapses by engineering major Larsen & Toubro in a matter involving its financial services arm.

L&T Finance Holdings (LTFH), which is promoted by Larsen & Toubro, offers a diverse range of financial products and services across the corporate, retail and infrastructure finance sectors, according to a Sebi order dated January 31.

The order comes following a probe conducted by Sebi into the irregularity in share trading of LTFH and into the possible violation of norms for the period from March 10 to March 14, 2014 by Larsen & Toubro.

During examination, Sebi observed that shareholding of Larsen & Toubro in LTFH reduced from 81.50 per cent for the quarter ending December 2013 to 76.61 per cent for the quarter ending March 2014, due to sale of over 8.32 crore shares by the engineering major through offer for sale (OFS) to the public on March 14, 2014.

Following the sale of shares, Larsen & Toubro was required to disclose the change in its shareholding to LTFH within the two working days under regulation 13(3) of PIT (Prohibition of Insider Trading) Regulations, 1992. However, it had allegedly failed to do so.

Citing submission of Larsen & Toubro, Sebi said the engineering major had disclosed the change in its shareholding to LTFH and stock exchanges under regulation 13 (4A) of PIT Regulation, 1992 within two days from the date of sale of shares.

The regulator added that the non disclosure under Regulations 13(3) is merely technical in nature as Larsen & Toubro had filed disclosure under specific provisions of Regulations 13(4A).

Regulation 13(3) mandates disclosure by any person who holds more than 5 per cent shares for voting rights in any listed company, while as per Regulation 13(4A) disclosure is required to be made by any person who is promoter or part of promoter group.

Noting that the allegation levelled against Larsen & Toubro does not stand established, the Securities and Exchange Board of India (Sebi) said the matter is disposed of.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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