Sebi slaps Rs 15 lakh fine for non-compliance

Sebi slaps Rs 15 lakh fine for non-compliance

Stock market regulator Sebi has slapped a cumulative fine of Rs 15 lakh on three persons in the case of Global Securities Ltd for their failure to comply with the summons issued by the regulator.

For Umesh Kashinath Gawand, Kamlesh Kanahiyalal Joshi, and Jagdish Goverdhan Ajwani, a fine of Rs 5 lakh each was levied.
At the time of the inquiry, the people were the company’s executives. During the period from May 1, 2010, to April 30, 2014, an investigation was carried out by the watchdog on Global Securities shares to investigate issues related to the preferential allocation mechanism and the use of preferential issue proceeds.

At the time of the inquiry, it was observed that summons were sent to the individuals (notices) requesting preferential allocation data.
The individuals were given sufficient opportunities and time to send the relevant information to the investigating officer on many occasions, as requested under summons, the order said.

However, it is noted that none of them submitted that information to the investigating officer, despite the letters of summons and reminders given to the notices, Sebi said. The notices subsequently did not include the information demanded under the summons and therefore did not comply with the summons, Sebi stated in its order.

The watchdog imposed Rs 3 lakh fine on Global Securities Ltd for its failure to file a quarterly shareholding pattern for two consecutive quarters as required under the Listing Agreement, according to another order passed on Friday.

In a separate order, the regulator levied a fine of Rs 5 lakh on Saffron Capital Advisors Pvt Ltd for its failure to exercise due diligence while ensuring the veracity and adequacy of the incorrect disclosures made in the Acropetal Technologies Ltd NSE 4.55 percent initial public offering (IPO) prospectus (ATL).


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