SEBI has slapped a fine of ₹50 lakh on consumer goods giant Unilever Plc and six of its holding companies for violating the Substantial Acquisition of Shares and Takeovers Regulations Act (SAST).
According to the Act, any promoter or person having control over a company shall, within 21 days from the financial year ending March 31, as well as the record date of the company for the purpose of declaration of dividend, disclose the number and percentage of shares or voting rights held by him and by persons acting in concert, in that company to the company.
However, SEBI has alleged that the promoters of the ₹27,000-crore FMCG firm had not complied with the provisions of the Act and had delayed in filing the disclosure about their holdings in HUL by four to 31 days during the years 2006, 2008, 2009, 2010 and 2013.
While the Anglo-Dutch Unilever Plc will have to pay ₹8 lakh, its holding companies, namely Brooke Bond Group, Unilever Overseas Holdings AG, Unilever UK & CN Holdings Ltd, Brooke Bond South India Estates Ltd, Unilever Overseas Holdings BV and Brooke Bond Assam Estates Ltd have been fined ₹7 lakh each.
An Unilever spokesperson said the company will abide by the penalty imposed by the market regulator. However, the company admitting to the delay said the intention was not purposely to conceal any information.
"The non-compliance with SEBI regulations was inadvertent in nature without any intention to conceal any information or gain any advantage. There was no change in Unilever’s shareholding between March 2005 to April 2013 and therefore, there was no unfair benefit attained nor was any harm caused to the investors or public at large," the spokesperson said.
SEBI order also said that if the disclosure obligations under SAST Regulations are not made in time, then the investors will be deprived of important information at the relevant point of time.
SEBI came across the violations while examining the open offer letter by Unilever Plc to acquire 48.7 crore equity shares of HUL representing 22.5 per cent of the equity share capital at a price of ₹600 a share.