The Securities and Exchange Commission has fined a local company $100,000 for failing to issue statements that it acquired shares in publicly traded paint company, Berger, but failed to advise the SEC of material facts in the deal.

Local firm Chan Ramlal Ltd, whose director is businessman Devanand Ramlal, agreed to pay the $100,000 fine following a hearing with the SEC.

Chan Ramlal Ltd ’contravened the law on two counts’, the SEC said in a statement published in yesterday’s newspaper.

It failed to issue a press release, as required by law, that it acquired more than ten per cent of Berger Paints Ltd and it did not advise the SEC of a subsequent sale of the Berger shares, the SEC stated.

In April, 2008, the SEC said its market surveillance staff observed that Chan Ramlal Ltd had acquired 12 per cent of Berger shares and did not report it to the SEC.

The company ignored ’several written requests’ for an explanation and finally responded to the SEC, saying that its shareholding was no longer in excess of the ten per cent threshold, the SEC said.

’Upon further investigation, the SEC discovered that while (Chan Ramlal Ltd) had indeed sold a portion of the shares, the buyer was Devanand Ramlal, a director and the majority shareholder of (Chan Ramlal Ltd),’ the SEC said.

’The SEC viewed the omission of this material fact as intentionally misleading and an attempt to create the impression that CRL was no longer in control of the shares in question.’