Markets regulator Sebi imposed a penalty of Rs 10 lakh on an individual for not complying with the watchdog's earlier directive to disgorge amount of unlawful gain.
In May 2014, the regulator had passed an order directing Purshottam Khandelwal to disgorge an unlawful profit of Rs 26.03 lakh with a 12 per cent interest per annum from March 2007 till the date of payment for indulging in fraudulent and manipulative activities in the scrip of Sumeet Industries Ltd.
The regulator had observed that "Sumeet Industries Ltd, its directors and promoter group entities along with the Noticee, acting under a premeditated fraudulent, unfair and manipulative plan, device and artifice, manipulated the price and volume in the scrip to enable the promoter group entities to offload their shareholding in Sumeet Industries at profitable prices."
The regulator said "entities violating the directions issued by Sebi seriously compromise the regulatory framework and are detrimental to the interest of the investors in the securities market. The interest of the investors and the orderly development of the securities market require that perpetrators of such activities should be suitably penalised."
Disclaimer: No Business Standard Journalist was involved in creation of this content