Trainer Tim Martin has been disqualified for six months on an improper action charge relating to the purchase of a filly.

Racing NSW stewards found that Martin, who pleaded guilty to the charge on Friday, failed to pay New Zealand Bloodstock all funds received from shareholders who bought a 55 per cent stake in a High Chaparral filly two years ago.

After considering Martin's guilty plea and his good record, they reduced the penalty from an initial nine-month disqualification to six, starting immediately and finishing on February 9 next year.

Martin has been permitted to continue training under a stay of proceedings after lodging an appeal against the penalty.

The multiple Group One-winning trainer, who put the polish on top sprinter and now sire Exceed And Excel, has Danawi engaged at Rosehill on Saturday.