You are here: Home » PTI Stories » National » News
Business Standard

Sebi slaps Rs 1 cr fine on individual in DSQ Software case

Law Crime

Press Trust of India  |  New Delhi 

Markets regulator Sebi Friday slapped a fine of Rs 1 crore on a former promoter of DSQ Software for failing to comply with its directions passed more than 14 years ago.

Dinesh Dalmia failed to buy back 1.30 crore shares as directed by the watchdog, which had found him guilty of fraudulent trading in 2004.

Sebi carried out an investigation into sharp fluctuation in the company's share price during 1999-2001 period. The price of shares fluctuated from Rs 250 in October 1999 to Rs 2,631 in March 2000 and then to Rs 150 by March 2001.

It was found that Dalmia had fraudulently issued shares in the secondary market.

For non-compliance with its directions, Sebi has imposed a fine of Rs 1 crore on Dalmia.

"The noticee (Dalmia), by not complying with the directions of Sebi has committed a serious violation which would attract the maximum penalty.

"Although the penalty amount would not help in restituting the investors but it will ensure that a message is sent to everyone that non-compliance of Sebi orders would not be treated lightly," the regulator said in an order on Friday.

In 2004, the watchdog directed the individual to buyback 1.30 crore shares of the company but the order was challenged in the Securities Appellate Tribunal (SAT) and then in the Supreme Court.

In 2016, the Supreme Court directed Dalmia to deposit Rs 30 crores with Sebi within six months. In case he failed to deposit the money, then Sebi's order passed in 2004 would "stand revived."

While imposing the Rs 1 crore fine, Sebi said that it is a matter of fact that no shares have been bought by the Dalmia nor has any amount been deposited with the regulator.

"... even after lapse of more than 14 years since Sebi passed the order, the noticee has not taken any steps to restitute the poor investors who had lost money due to the fraud committed by the noticee," the latest order said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, January 18 2019. 22:10 IST