Market watchdog Sebi today imposed a penalty of Rs 10 lakh on Amadhi Investment for failing to comply with its earlier directions regarding disgorgement of unlawful gains.
In March 2017, the regulator had passed an order directing Amadhi to disgorge an unlawful profit of Rs 77.77 lakh with 10 per cent interest from 2005 till the date of payment for indulging in fraudulent and manipulative activities in the initial public offerings (IPO) of several companies during 2003-05.
However, Amadhi failed to disgorge the amount and hence violated the March 2017 order, the Securities and Exchange Board of India (Sebi) said.
Moreover, Amadhi has not appealed before the Securities Appellate Tribunal, hence the March 2017 order was in force all times, added Sebi.
"Non compliance of the directions is continuing till date... the brazen defiance shown by the Noticee (Amadhi Investment) towards directions cannot be viewed lightly... Such violators should be suitably penalized," the regulator said, slapping a fine of Rs 10 lakh.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)