Sangam Health Care's former promoter settles case with SEBI, pays Rs 48 Lakh

New Delhi: Markets regulator SEBI has settled a case related to alleged disclosure lapses by an erstwhile promoter of pharmaceutical firm Sangam Health Care Products after he paid over Rs 48 lakh towards settlement.

The regulator had initiated adjudication proceedings against L S Patil (former promoter of Sangam Health Care) for allegedly not complying with disclosure norms as required under SAST (Substantial Acquisition of Shares and Takeovers) Regulations and PIT (Prohibition of Insider Trading) Regulations.

In an order dated June 29, Sebi noted that last month Patil remitted the settlement amount of Rs 48.26 lakh in respect of the alleged violations, following which the regulator disposed of the proceedings against him.

The former promoter of Sangam Health Care had submitted an application to settle the proceedings initiated against him by the Securities and Exchange Board of India (Sebi), the regulator said.

The regulator's High Powered Advisory Committee had recommended the settlement of the case on payment of Rs 48.26 lakh by Patil. The recommendation was also accepted by the panel of Whole Time Members of Sebi.

This settlement order "disposes of" the adjudication proceedings in respect of Patil, the regulator said.

However, Sebi noted if any representation made by Patil in the settlement proceedings is subsequently found to be untrue, the regulator would initiate proceedings against him.

In a separate order dated June 29, Sebi also settled a case related to alleged violation of PIT Regulations with Polaris Software Lab, now known as Polaris Consulting and Services, after the firm paid Rs 6.80 lakh towards settlement.