This is one of the biggest penalties imposed by Sebi under the adjudication process following the enhancement of the regulators power to impose stringent penalties in 2002.
Sebi was investigating the price manipulation of DSQ Biotech which occurred during 2000-01. LIL had traded in the DSQ Biotech stock and in that connection Sebi had sought some information from LIL, which it could not provide.
Amit Pradhan, the Sebi-appointed AO, in his order, said, I am fully satisfied that this case deserves severe penalty since its a matter of multi crore fraud amounting to Rs 220 crore. Specifically, LIL held 10.60 lakh shares of DSQ, whose value at fraud works out to Rs 29 crore; these shares were sold in the market at a value of Rs 16 crore.
LIL did not disclose the source of availability of these 10.6 lakh shares when this information was sought from LIL by issuing summons. In other words it can be said that there is an undue enrichment equivalent to the said amount to LIL.
He said, it may be emphasized that 348 days have elapsed since the violation occurred and it continues till date.