Sebi fines Ranklin Solutions Rs 20 lakh for providing false information
Markets watchdog Sebi Thursday imposed a fine of Rs 20 lakh on Ranklin Solutions Ltd for providing false information to the regulator with regard to transactions executed by its managing director.
The regulator had sent notice to the firm in May 2013 and sought information regarding the transactions carried out by its managing director MJVVD Prakash.
The regulator had also sought clarifications from the brokers -- Bonanza Portfolio Ltd and India Infoline Ltd -- for trading done in the account of Prakash.
From the replies, Sebi observed that Prakash had done several transactions from his account and was aware of the transactions.
However, the company while replying to the summons said that Prakash was unaware of the transactions executed in his name whereas the records establish that Prakash was indeed aware of all the trades with both the brokers, Sebi said.
It is an admitted fact that Ranklin has submitted false information for the summons issued by the investigating authority (IA) and accordingly violated Sebi norms, the regulator said.
"It is pertinent to take into account that submitting false information with respect to the summonses has the potential to hamper and waylay the investigations and thus compromises the regulatory framework," Sebi noted.
Accordingly, the Securities and Exchange Board of India (Sebi) imposed a fine of Rs 20 lakh on Ranklin Solutions.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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