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Sebi imposes Rs 5 lakh fine on 8 individuals

Press Trust of India  |  New Delhi 

Markets regulator today imposed a total penalty of Rs 5 lakh on eight individuals for violating capital market norms in a matter relating to Taaza International.

In an order, the Securities and Exchange Board of (Sebi) said that the individuals "have violated" the provisions of Securities Contracts (Regulation) Act (SCRA).


The eight individuals are Ramana Bharati, Ramana Boina Shankar, Polsani Ravinder Rao, Sreeram V Mangalapalli, N Venugopal, ARS Rajan, Lakshmi Rajan and Pabbathi Venkata Ravi Kumar. Polsani Ravinder Rao is one of the current promoters of the firm.

The regulator had conducted an investigation into irregular trading in the scrip of Taaza International Ltd, formerly known as Arunjyoti Enterprise Ltd.

The probe revealed that the individuals had signed Memorandum of Understanding (MoU) among themselves wherein consideration for transferred was deferred beyond a day of the contract and the scrips would be unconditionally returned to the seller in case of default in payment and violated the provisions of SCRA.

The regulator said that the of the firm were sold and purchased by the individuals in off-market deal on October 12, 2011 and the payments were made much earlier on August 11, 2011 or much later on November 18, 2011, which is not in conformity with the provisions of SCRA.

"The noticees (eight individuals) have violated the provisions... of SCRA," said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, November 09 2017. 22:42 IST
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