Sebi slaps Rs 1 cr fine on Sunshine Infrabuild, 2 directors for non compliance

Sebi today imposed a fine of Rs 1 crore on Sunshine Infrabuild Corporation and its two directors for not complying with the market regulator's earlier direction to refund the money raised illegally from investors.

In an order passed in September 2015, Sebi had held that the firm and its two directors, Dharm Singh Kushwah and Mukesh Singh, along with others, had raised Rs 35.41 crore from 8,071 investors illegally through different types of unregistered debentures from 2010 to 2014.

Through the order, the regulator had directed Sunshine and its directors to refund the money with interest to the investors.

In its fresh ruling, Securities and Exchange Board Of India (Sebi) observed that the firm and its two directors have failed to refund the money to investors and thus not complied with the earlier order.

"The gravity of this matter cannot be ignored as non-compliance of the directions is continuing till date after lapse of almost 3 years," Sebi said.

"The brazen defiance and wilful disobedience by the noticees (Sunshine and two directors) towards directions of Sebi cannot be viewed lightly," it added.

Noting that "maximum penalty" under the Sebi Act upon the entities will be commensurate with their violations, the regulator imposed a fine of Rs 1 crore on them.