Sebi imposes Rs 10 lakh fine on entity

Sebi imposes Rs 10 lakh fine on entity

Sebi on Thursday imposed a fine of Rs 10 lakh on Mayur Developments and Leasings Ltd for its failure to comply with summons issued by the regulator in HPC Biosciences case.

An investigation was conducted by Sebi into the shares of HPC Biosciences Ltd regarding alleged manipulation in the Initial Public Offer (IPO) process of the company.

Mayur Developments (noticee) was asked to furnish certain information related to transfer of funds by HPC from the IPO proceeds, which was relevant for the purpose of investigation.

The company had come out with its IPO in March 2013.

The watchdog noted that the noticee failed to provide the details as sought by the investigating authority.

“… noticee failed to submit the information/ documents sought by investigating authority vide summons dated August 4, 2016, which hampered the investigation to ascertain the facts under investigation,” Sebi said in an order.

While imposing the fine of Rs 10 lakh, Sebi said that non-furnishing of the details of fund transfer hampered the investigation and any hurdle due to non-cooperation by any person is detrimental to the interest of investors in securities market, which needs to be dealt strictly with.

In a separate order on Thursday, Sebi slapped a penalty of Rs 5 lakh each on Padma Mundunuri and China Jogiraju Patsamatla for indulging in fraudulent trading activities in the shares of LN Industries India Ltd.

The regulator had conducted an investigation in the scrip of LN Industries during December 1, 2006 to August 31, 2012 period.

It was found that the individuals had indulged in synchronised and reversal trades among themselves on a consistent basis and thereby manipulated the price of the scrip and created artificial volumes in the market.

The individuals have been fined for violating the provisions of Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.

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