Sebi imposes Rs 30 lakh fine on Plethico Pharma, 3 others

Markets regulator Sebi today imposed Rs 30 lakh fine on Plethico Pharmaceuticals and its three senior officials for disclosure lapses and failure to redeem Foreign Currency Convertible Bonds (FCCBs) issued to investors.
These officials are Shashikant Patel, chairman and managing director; Chirag Patel, whole time director; Gauravi Parikh, executive director.
The Sebi order follows a complaint from Economic Offences Wing in respect of default of Plethico Pharma in redeeming the FCCBs and failure to disclose it stock exchanges.
The Securities and Exchange Board of India (Sebi) had carried out investigation for October 23, 2012-- which was the date of default in redemption of FCCBs -- to find out the possible violations.

The probe found that these entities failed to disclose about raising of money through FCCBs and subsequently non redemption of FCCBs despite the maturity date.
By indulging in such activities, they violated 'Code of Corporate Disclosure Practices' under Prevention of Insider Trading (PIT) Regulations as well as Listing Agreement.
"Not making disclosures regarding raising of money through FCCBs and subsequently non redemption of FCCBs despite maturity date, are certainly affecting the rights of the investors /bondholders and justifiable penalty needs to be imposed upon the noticees to meet the ends of justice," Sebi General Manager and Adjudicating Officer Rachna Anand said.

Accordingly, the regulator levied the fine on them.