STOCK MARKET BSE NSE

SEBI slaps Rs 25 lakh fine on two individuals for non-compliance with directives

According to a SEBI order, he individuals were engaged in providing investment advisory services to investors upon the receipt of requisite fees without obtaining registration from SEBI.

Published: 20th January 2021 07:26 PM  |   Last Updated: 20th January 2021 07:26 PM   |  A+A-

SEBI

SEBI (File Photo | Reuters)

By PTI

NEW DELHI: Markets regulator SEBI on Wednesday imposed a total penalty of Rs 25 lakh on two individuals for not complying with its directives to disgorge the unlawful gains made by them. The individuals are Mansoor Rafiq Khanda and Firoz Rafiq Khanda (noticees).

According to a SEBI order, he individuals were engaged in providing investment advisory services to investors upon the receipt of requisite fees without obtaining registration from SEBI.

In May 2016, the regulator had directed them to impound a sum of over Rs 5 crore as ill-gotten gains made by them jointly and severally.

Thereafter, in June 2018, the market regulator passed an order against the individuals directing them to disgorge the unlawful gains made by them along with interest as determined by the regulator in the impounding order dated May 12, 2016.

Further, the noticees had filed an appeal before the Securities Appellate Tribunal (SAT), which was dismissed in January 2020.

However, the Securities and Exchange Board of India (SEBI) noted that the individuals have not paid the disgorgement amount even after almost 11 months have passed subsequent to the order of the SAT in January 2020.

The regulator also noted that the noticees have completely disregarded the directions of SEBI to disgorge the ill-gotten gains made from their activities as unregistered investment advisers. This shows unwillingness on the part of the noticees to comply with the directions of SEBI and such defaults seriously compromise the regulatory framework, the order said.

For not complying with its directives, the regulator has penalised them.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp