Sebi fines individual Rs 5L in Ravi Kumar Distilleries IPO case
The information was sought regarding the alleged receipt of Rs 40 lakh by Doosa into his account from a firm.
Sebi today imposed a fine of Rs 5 lakh on an individual for failing to provide requisite information sought by the regulator in a case related to alleged irregularities in the initial public offering (IPO) of Ravi Kumar Distilleries.
In an order, Sebi said Laxminarayana Veeramallu Doosa failed to provide the requisite information to the regulator's investigating authority (IA) as sought by it through summons issued in January and June 2014 and also failed to appear before it.
The information was sought regarding the alleged receipt of Rs 40 lakh by Doosa into his account from a firm -- S5 Trading -- and the subsequent transfer of the same amount to the account of his stock broker for trading in shares of Ravi Kumar Distilleries Ltd (RKDL) on the first day of the listing of the company.
Sebi said that the allegation made in the investigation report that RKDL along with other firms and the associated entities, including Doosa, have siphoned of the IPO proceeds of RKDL to the tune of Rs 33.83 crores is "serious in nature".
"The said information sought from the noticee (Doosa)... was very relevant and important in unearthing the truth to protect the interest of the investors and punish the manipulators associated with the IPO of RKDL", the Securities and Exchange Board of India (Sebi) said.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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