Sebi levies Rs 15 lakh fine on an individual for violating markets norms

Markets regulator Sebi on Monday slapped a fine of Rs 15 lakh on an individual for illegally mobilising funds from the public through a collective investment scheme in the matter of Alchemist Infra Realty Ltd.

In addition, the regulator asked Balvir Singh (individual) to pay the penalty within 45 days.

In the matter related to Alchemist Infra, Sebi initiated adjudication proceedings against Alchemist and its directors, including Singh, for the violation of CIS (Collective Investment Scheme) rules.

In February 2021, the markets watchdog passed an order and slapped a fine of Rs 1 crore on Alchemist and its directors, including Balvir Singh, as they were engaged in fund mobilising activity from the public by floating and launching collective investment schemes without obtaining registration from the regulator.

The order came after the Securities Appellate Tribunal (SAT) set aside Sebi's order against Singh for violating CIS norms and directed the markets watchdog to pass a fresh one.

Sebi's Adjudicating Officer Soma Majumder said, "I find that Noticee (Balvir Singh), being a director of Alchemist during the period from April 2008 to February 2009, was responsible for the conduct of the firm, which engaged in fund mobilising activity from the public through investment contracts by floating/sponsoring/launching collective investment schemes without obtaining registration from the regulator during his tenure".

"Therefore, the allegation that Noticee has violated CIS regulations stands established," she added.

In a separate order, the regulator slapped fines totalling Rs 10 lakh on Bull Research Investment Advisors and its directors for flouting regulatory norms.

The order came after Sebi had conducted an examination of pending complaints in SCORES against Bull Research, a registered Investment Adviser under the markets regulator.

Ashif Shaikh, Vinit Satpute and Sandeep Kushwaha were the directors of Bull Research Investment Advisors.

The regulator issued the show cause notices' to the noticees (Bull Research, Shaikh, Satpute and Kushwaha) in February 2023.

In another order, the regulator imposed a Rs 5 lakh fine each on Excel Buildtech and Emery Tie-up for indulging in non-genuine trades in the illiquid stock options segment on BSE.