SEBI imposes ₹2 lakh total penalty on Praveg Limited for violating disclosure norms in its 2019 amalgamation scheme with Sword and Shield Pharma.
Violations include failure to disclose unlisted entity details, pre/post-merger shareholding pattern, and omitting a critical public shareholder voting clause.
The scheme drastically reduced public shareholding from 93.4% to 26.03%, making the omitted disclosures material for investor decision-making.
Adjudicating Officer rejected Praveg's delay and judicial conclusion defenses, noting violations occurred despite subsequent curative measures in 2021.