Sebi slaps Rs 10 mn fine on Prayag Infotech for not providing information

Markets regulator Sebi on Tuesday imposed Rs 10 million fine on Prayag Infotech Hi-Rise Ltd and its two directors for failing to provide requisite information sought by its investigating authority.

The entities failed to provide the requisite information to the investigating authority as sought by it through summons issued in January 2014 and also failed to appear before the authority as required under summons, Sebi said in an order.

The information sought included details of the scheme-wise amount mobilised by the company, along with the number of investors in them, till date; detailed break-up of the refund made and names and addresses of the redeemable preference share holders to whom refund has been made.

The regulator had initiated an investigation in the matter of Prayag to ascertain whether the activities of the company, including the money mobilisation activities were detrimental to the interest of the investors and to find out possible violations of the Companies Act and Sebi Act

According to Sebi, Prayag and its directors, Basudeb Bagchi and Lakshmi Kant, "did not furnish information sought nor did they make appearance before the IA required by way of summonses" and thus had failed to comply with the provisions of Sebi norms.

Accordingly, the Securities and Exchange Board of India (Sebi) has levied the fine totalling Rs 10 million on them.