Failure To Disclose Acquisitions: SEBI Imposes Penalty On Advik Capital Ltd's Promoter-Directors

SEBI imposed penalties totaling Rs 13 lakh on promoter-directors of Advik Capital Ltd, Vikas Garg, Seema Garg, and Sukriti Garg, for failing to comply with disclosure requirements related to share acquisitions in the company. The acquisitions, made between October 2021 and April 2022, required mandatory disclosure under SEBI (SAST) Regulations. The investigation revealed delays ranging from 44 to 234 days in the noticees' disclosures, breaching the stipulated two-day timeframe. Seema Garg's sale of 2.03% shares in February 2022 also failed to meet disclosure deadlines, resulting in a 107-day delay.\r

SEBI emphasized the critical importance of timely and comprehensive disclosures for market transparency and investor protection. Referring to past decisions, SEBI highlighted that disclosures enable informed decision-making among investors and facilitate effective regulatory oversight. Despite acknowledging the absence of quantifiable figures on gain or loss, SEBI justified the penalties, citing Section 15A(b) of the SEBI Act, which pertains to penalties for failure to furnish information within specified timelines.