SEBI imposes Rs 1 lakh fine on Fortis Healthcare Holdings for disclosure lapses

Sebi found that Fortis Healthcare Holdings had failed to make timely disclosures about the change in shareholding in the prescribed format and has thereby violated the provision of Substantial Acquisition of Shares and Takeover (SAST) Regulations.

The regulator noted that the shareholding of the former promoter entity decreased in Fortis Healthcare Ltd in 2017 following the sale of shares.

Sebi observed that promoters' shareholding in Fortis Healthcare Ltd (target company) was 39.82 percent as on July 18, 2017, in which Fortis Healthcare Holdings'' stake was 39.71 percent.

Subsequently, pursuant to the sale of shares of the target company by Fortis Healthcare Holdings during July 19-27, 2017, the stake of Fortis Healthcare Holdings and promoters in the target company decreased to 37.60 percent and 37.7 percent, respectively, on July 27, 2017.

Since this change in shareholding was more than 2 percent, it required disclosure to be made by the holding company under the regulatory norms.

Read also: Insider Trading: Divis Labs Individual Slapped Rs 11 Lakh Fine, Banned From Securities Market By SEBI

"I note that the noticee had failed to make timely disclosures in the prescribed format and has thereby violated ...SEBI SAST Regulations, 2011," Sebi Adjudicating Officer G Ramar said in its order.

Fortis Healthcare Holdings is the noticee.

Read also: Delhi HC allows SFIO to interrogate Ex- Fortis promoters for two weeks