In the current fiscal, the regulator imposed a fine of Rs5 lakh each on Lohia Polyesters and Kanel Oil & Export Industries and Rs10 lakh on Earnest Healthcare in November
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has slapped penalties of over Rs31 lakh on nine companies since the beginning of the current fiscal for allegedly failing to resolve investor complaints, reports PTI.
As per the latest information with the SEBI, the regulator has imposed a total monetary penalty of Rs31.35 lakh so far in 2012-13.
These penalties have been imposed against nine companies for their alleged failure in resolving investor grievances.
The number of such companies in the current fiscal so far is higher than a total of five companies against whom penal action was taken by SEBI in the entire previous fiscal, 2011-12, and three in 2010-11.
However, the total penalties imposed in 2011-12 at Rs53.30 lakh and Rs43 lakh in 2010-11 are higher than those slapped by SEBI in 2012-13. The total penalty in 2010-11 had declined by Rs10 lakh after Securities Appellate Tribunal lowered the penalty on one company, Kaleidoscope Films Ltd (formerly known as Gujarat Investment Castings Ltd) from Rs17 lakh to Rs7 lakh.
SEBI said it imposed these monetary penalties against the companies "through adjudication proceedings for their failure to redress investor grievances".
In the current fiscal, the regulator imposed a fine of Rs5 lakh each on Lohia Polyesters and Kanel Oil & Export Industries and Rs10 lakh on Earnest Healthcare in November.
Prior to that, SEBI had imposed a fine of Rs5 lakh against Gujarat Filaments and and Rs10,000 on Gujarat Aqua Industries.
Earlier this fiscal, SEBI had slapped a penalty of Rs75,000 on Raj Irrigation Pipes & Fittings, Rs two lakh on Satguru Agro Industries and Jord Engineers India each, and Rs1.5 lakh on Simco industries.
Additionally, SEBI in the first five months of the current fiscal had barred four companies--Shukla Data Technics, Top Telemedia, International Hometex and Alpine Industries and their respective directors from accessing securities market for allegedly not resolving investor grievances.
The regulator restrained these four companies and their directors "from accessing the securities market and from buying, selling or dealing in securities directly or indirectly, in whatsoever manner, till all the investors' grievances against the company are resolved by them."
In August, SEBI had asked all listed companies to register themselves with its online complaint redressal system -- SCORES -- by 14th September, after which they would be required to resolve all grievances within 30 days of their receipt.
In case, a company is unable to initiate action for redressal of investor grievances within seven days of receipt in SCORES, the regulator could take necessary enforcement actions.
SEBI had launched this online system for handling investor grievances in June 2011.
SEBI probe into the alleged irregularities in shares of Orchid Chemicals revealed that certain designated employees of the company including Deshpande had done opposite transactions in 2009
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has disposed of the case against one of the employees of Orchid Chemicals and Pharmaceuticals Ltd (OCPL) in a matter related to violations of insider trading norms, reports PTI.
SEBI had alleged that PN Deshpande, as an employee of OCPL, had indulged in opposite transactions -- buying as well as selling the shares of a company within a period of six months, violating insider trading norms.
In its order, the regulator said the quantity of shares involved in the transaction by Deshpande was "miniscule" and records did not show that by such dealing, he had "acquired wrongful gain or caused any wrongful loss to the others".
"It is not the case that the Noticee (Deshpande) tried to do any unfair insider trading or influence the price of the scrip in any manner," SEBI said.
It also noted that Deshpande was not privy to any of the important or sensitive information which was discussed by the Board of OPCL and which allured him to trade in the company's shares.
In addition, SEBI observed that available records do not suggest that default by Deshpande is repetitive in nature.
"I note the fair admission by the Noticee (Deshpande) towards the allegation and the assurance given by him not to do such activity in future coupled with a request of pardon," SEBI's Adjudicating Officer PK Kuriachen said.
"I am of the view that OCPL has taken appropriate remedial actions against the noticee for his breach by way of issuing a warning notice to him," he added.
SEBI probe into the alleged irregularities in shares of OCPL revealed that certain designated employees of the company including Deshpande had done opposite transactions from 30th October to 4 December 2009.
SEBI said Jalaj I Batra indulged in circular/reversal synchronised trades with other brokers and clients in Betala Global Securities shares
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) has slapped a fine of Rs5 lakh on an individual for allegedly facilitating fraudulent trading practices in shares of Betala Global Securities Ltd (BGSL), reports PTI.
SEBI said a Jalaj I Batra indulged in circular/reversal synchronised trades with other brokers and clients in the shares of Betala Global Securities.
"...impose a total penalty of Rs5 lakh on the noticee (Batra)...the penalty is commensurate with the default committed by the noticee," SEBI said in its order.
In a probe conducted by SEBI, the regulator found a spurt in the share price of BGSL during 2nd May-21 November 2003. The regulator said the company's scrip price jumped by 254% and a total of 1.54 crore shares were traded.
SEBI said a group of clients connected to each other i.e., a Mahesh Mistry traded in the shares of the BGSL.
Batra, being a part of Mahesh Mistry Group, bought 15.35 lakh shares for Rs9.41 crore and sold a total of 6.04 lakh scrips valued Rs 6.45 crore.
"The noticee purchased 10.91% of the total market volume and sold 6.29% respectively. The noticee contributed 9.96% and 3.92% of the circular trades buy and sell volume respectively," SEBI said.
SEBI also said that evidence is suggesting that the Mahesh Mistry Group, of which noticee was a part, followed a modus operandi of artificially inflating the price and creating false volumes by executing the synchronised transactions through their brokers.