Sebi slaps fine on an individual for incorrect information

Markets regulator Sebi has slapped a fine of Rs 1 lakh on one Sanjeev Bansal for making incorrect statement before its investigating authority in the case of SRG Infotech Ltd.
The matter relates to investigation into unusual price rise of SRG Infotech shares from Rs 9 to Rs 20, an increase of 12 per cent and the role of various persons including Bansal.
The Investigating Authority (IA) issued summon in 2004 to Bansal for producing documents and making personal appearance to ascertain his role in the irregularities in SRG shares.
"I find that noticee (Bansal) made incorrect statement before the IA. It is settled position of law that making a false statement or if the information furnished is incorrect or misleading would amount to failure to furnish the information sought and thereby violative of section...Of Sebi Act," Sebi Chief General Manager and Adjudicating Officer S V Krishnamohan said in an order.

He further said making incorrect statement before the IA hampers the investigation.
Sebi, in its order in September 2008, noted that Bansal traded in the scrip of SRG and he made a false statement before IA that he never dealt for Arihant Equity Fund in the shares of SRG. Bansal was a director in Arihant Equity Fund.

In this case it is relevant to note that wrong statement was made to IA in July 2004 whereas the order was passed in September 2008 after completion of probe.
"..Any delay or hurdle in investigation due to non -cooperation by any entity is detrimental to the interest of investors in securities market and the same deserves to be viewed seriously," the order noted.

Accordingly, Sebi has imposed a penalty of Rs 1 lakh on Bansal.