A fine of Rs 5 lakh each has been imposed on Umesh Kashinath Gawand, Kamlesh Kanahiyalal Joshi and Jagdish Goverdhan Ajwani.
The individuals were granted ample opportunities and time to submit the requisite information on several occasions, as sought under summons, to the investigating officer, the order said.
Stock market regulator Sebi has slapped a total fine of Rs 15 lakh on three individuals for their failure to comply with summons issued by the regulator in Global Securities Ltd case. A fine of Rs 5 lakh each has been imposed on Umesh Kashinath Gawand, Kamlesh Kanahiyalal Joshi and Jagdish Goverdhan Ajwani.
The individuals were the directors of the company at the time of investigation. An investigation was conducted by the watchdog in the shares of Global Securities during the period from May 1, 2010 to April 30, 2014 to examine the matters relating to preferential allotment process and utilisation of preferential issue proceeds.
It was observed at the time of investigation that summons were delivered to the individuals (noticees), seeking information on preferential allotment.
The individuals were granted ample opportunities and time to submit the requisite information on several occasions, as sought under summons, to the investigating officer, the order said. However, it is noted that despite summons and reminder letters issued to the noticees, none of them submitted that information to the investigating officer, Sebi said.
Thereafter, noticees did not provide the information sought under the summons and hence did not comply with summons, Sebi said in its order passed on Friday.
According to another order passed on Friday, the watchdog levied Rs 3 lakh fine on Global Securities Ltd for its failure to file quarterly shareholding pattern for two consecutive quarters as required under the Listing Agreement.
In a separate order, the regulator has imposed a fine of Rs 5 lakh on Saffron Capital Advisors Pvt Ltd for its failure to exercise due diligence while ensuring the veracity and adequacy in respect of the wrong disclosures made in the prospectus of Initial Public Offering (IPO) of Acropetal Technologies Ltd (ATL).
Saffron Capital Advisors (noticee) was the Book Running Lead Manager (BRLM) of ATL. As per the order, the statutory auditor of ATL was found to have wrongly certified the utilisation of the bridge loan amounting to Rs 20 crore by ATL.
Further, Sebi found that noticee has gone by the principle of assumption and relied on the certification by statutory auditor and not cross checked that, where the funds of bridge loan were deployed and, if they were genuinely utilised towards construction of building and working capital.
Being BRLM it has to carry out the independent due diligence / care and not to rely passively only on documents provided by ATL and Statutory auditor. But, such reasonable diligence/care was not adopted by it, Sebi said in an order passed on Friday.
The noticee ought to have demonstrated better professionalism, care and skill as a Sebi registered merchant banker but it has failed to be careful and steady in its duties as a merchant banker, the regulator said while imposing the fine.