Sebi slaps Rs 1 crore fine on an individual in SEL Mfg case

Capital markets regulator Sebi has slapped a fine of Rs 1 crore on Mahendra P Rathod for failing to furnish information sought by it in matters related to SEL Manufacturing.
Rathod failed to give necessary information, including details of trading in the scrips of SEL, whether he was allotted any share of the company in the IPO (initial public offer) and copy of demat accounts as well as bank statements, among others, sought by Sebi.
"... Even though two summonses were served on the noticee (Rathod), the noticee neither appeared before the IA (Investigating Authority) nor produced books of accounts /documents reports/information/records to IA which resulted in violation of the provisions of... The SEBI Act," Sebi said in an order.

"Inspite of service of summonses the noticee failed to co-operate with the IA," it added.
Accordingly, the regulator levied the fine of Rs 1 crore on Rathod.
Securities and Exchange Board of India (Sebi) conducted an investigation into the alleged irregularity in the trading of the shares of SEL during August 21-27, 2007.

In the same case, Sebi had last month imposed a penalty of Rs 1 crore on one Sendhaji J Thakor for failing to furnish information sought by the markets regulator.
In a separate order, the capital market watchdog has slapped a fine totalling Rs 43 lakh on Safal Herbs' promoters for allegedly failing to make shareholding disclosures within the prescribed timeline.

Promoters of Safal Herbs (formerly known as Parikh Herbals) who were collectively holding 18.82 per cent as on March 31, 2012 in the company, had offloaded their stake on various occasions during April-December 31, 2012 period in excess of the benchmark limits.
They failed to "make the disclosures regarding changes in their shareholding as well as annual disclosures regarding shares held by them.