Markets regulator Sebi has imposed a total penalty of Rs 13 lakh on Agnite Education and three other entities for failing to provide information sought by it.
Markets regulator Sebi has imposed a total penalty of Rs 13 lakh on Agnite Education and three other entities for failing to provide information sought by it. It has levied a fine of Rs 8 lakh on Agnite Education (formerly known as Teledata Informatics) for making incorrect disclosure repetitively about shareholding and for failing to comply with the multiple summons issued to it, Sebi said in an order.
Through summons, Sebi’s investigating officer (IA) had sought information pertaining to dates of internal meetings and names of all the persons involved; details of communication to exchanges with regard to corporate announcements, date and time of opening of trading window and details of bank accounts among others.
The Securities and Exchange Board of India (Sebi) had conducted a probe into a possible violation of the provisions of various regulations during March-December, 2007. In a separate order, Sebi has slapped a fine of Rs 2 lakh each on Arma Financial Services Ltd and Amoha Traders Pvt Ltd; and Rs 1 lakh on Jamsheed M Panday for their failure to provide information sought by it through summons in the matter of Agnite Education.
“I find that the noticees were given adequate opportunity by the IA to comply with the summonses. I am also of the view that it is the duty, responsibility and obligation of every person from whom information is sought to fully co-operate with IA and promptly produce all documents, records, information to the IA,” Sebi Adjudicating Officer Nagendraa Parakh said in an order.
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If people are allowed to flout the summonses issued to them during the course of the investigation, Sebi will not be able to discharge its statutory obligations in protecting the interests of the investors and safeguarding the integrity of the securities market, he said. “Thus, as the noticee did not provide the information, the same thwarted the attempts of Sebi to effectively gather vital evidence for the timely conclusion of the investigation proceeding,” he added.