Sebi today imposed a penalty of Rs 25 lakh on Midfield Industries' CMD Madhu Mohan Reddy for failing to provide the regulator information pertaining to the firm's IPO.
An investigating authority (IA) appointed by Sebi had sought information about investor category wise number of shares allotted in the initial public offer (IPO), details of fixed assets purchased, loans taken by company from its promoters, loans extended by the company and details on trading of promoters, among others, from the company several times by addressing summons and letters to Reddy.
According to the regulator, two summons dated October 6 and October 26, 2015 were also delivered on the address of the Chairman and Managing Director (CMD). However, Reddy did not provide the information pertaining to the IPO of Midfield Industries.
In an order, Sebi said it is to be concluded that Reddy had failed to provide information sought by various letters and summonses.
"By not providing the information as alleged it is to be held that noticee (Madhu Mohan Reddy) has consequently hampered the investigations and thereby violated... Sebi Act, 1992," the regulator added.
For the violation, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 25 lakh on Reddy.
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