SEBI ordered him imprisonment for failing to pay a penalty for making misleading disclosures
Under the clause 36 of the listing agreement, listed firms are required to disclose the details of all events, which will have a bearing on the performance or operations of the listed entity. (Photo: DC/File)
Mumbai: The Securities and Exchange Board of India (SEBI) on Thursday ordered the imprisonment of the non-executive chairman of Kolar Biotech Ltd for failing to pay a penalty for making misleading disclosures.
This is the first time SEBI has ordered the imprisonment of a defaulter since it was given expanded powers by a constitutional amendment last year.
SEBI said Vinod Hingorani, non-executive chairman and a major shareholder of Kolar Biotech, was ordered to serve six months in prison for not paying 16.5 million rupees ($262,000) in fines.
Hingorani and other major shareholders of Kolar were charged in 2010 with providing misleading information to the market to boost the company's share price.
( Source : reuters )
Next Story
