Shanghai New Huangpu Real Estate Co has been reprimanded by the Shanghai Stock Exchange for its failure to disclose its intention to take over a Shenzhen real estate company earlier in the year.

New Huangpu paid 280 million yuan (US$41 million) as a deposit prior to taking over Shenzhen Guangyinhai Real Estate Co from its biggest shareholder Shanghai Xin Huawen Investment Co. But New Huangpu did not disclose its intention to take over and did not observe the proper procedure for a shareholders' meeting, the bourse said in a statement over the weekend.

Xin Huawen later returned the deposit to New Huangpu which now has to wait for approval from its board members and for legal procedures to be completed, said a company statement on April 17.

The exchange also urged non-listed Xin Huawen Investment and its parent company, Huawen Media Investment Co, to comply with rules governing listed firms.