Moneycontrol Be a Pro
Get App
Last Updated : Jul 21, 2018 09:38 AM IST | Source: PTI

Sebi fines individual Rs 5L in Ravi Kumar Distilleries IPO case

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.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sebi 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.

Close

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.

The failure of Doosa to comply with the two summons issued by the IA has "clearly hampered" the investigation process, the regulator said.

Noting that Doosa "has failed to comply with the summons on two occasions" and the violation is repetitive in nature, Sebi imposed penalty of Rs 5 lakh on him.

Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.
First Published on Jul 21, 2018 09:35 am
Loading...
Follow us on
Available On