Sebi slaps Rs 21 lakh fine on 6 entities in Sanjay Dangi case

Written by Press Trust of India | Mumbai | Updated: Oct 29 2013, 04:12am hrs
Sebi has slapped a total penalty of Rs 21 lakh on six entities for alleged failure to comply with market watchdog's summons related to its probe on fraudulent trading activities by Sanjay Dangi and associated entities.

In six separate orders, the Securities and Exchange Board of India (Sebi) has imposed a penalty of Rs 10 lakh on Ivory Consultants and Rs 3 lakh on Forever Merchants.

Besides, it has slapped fine of Rs 2 lakh each on -- Sarswati Vincom, Winall Vinimay, Alps Vyapar and Hi-Tech Heritage.

Sanjay Dangi and his associates have already faced regulatory actions in connection with various violations in securities markets.

According to Sebi orders dated October 24, the entities had "failed to provide necessary information/documents to the market regulator's investigation authority in response to summons issued" to them.

Sebi through its summons had sought details regarding the nature of relationship and financial transaction they had with entities, which were allegedly involved in fraudulent dealings.

The regulator said the information was very relevant and important to the investigation process.

Sebi had passed an interim order in December 2010 banning Dangi, his associates and promoters of four firms -- Murli Industries, Hubtown, Brushman (India) and Welspun-Gujarat Stahl Rohren.

It was prima facie observed in the interim order that the Dangi Group along with the promoters of various companies had indulged in fraudulent and unfair trade practices relating to securities market, among others.

Sebi said the Dangi group entities artificially increased volumes and price of the companies or even maintained the prices.