Markets regulator Sebi Tuesday levied a total fine of Rs 62.5 lakh on Ranklin Solutions and its seven directors for misleading corporate announcements and disclosure lapses.
A penalty of Rs 10 lakh was imposed on Ranklin Solutions, while the seven directors -- MJVVD Prakash, Venkateswara Rao, Jyotsana Lakshmi, JVV Raghava Kumar, M Satish Kumar, K S Chakravarthi and K VijayaRama Raju -- were fined Rs 7.5 lakh each.
The regulator during its investigation between February 2010 and January 2011 found that Ranklin in a corporate announcement to the BSE informed that board of directors proposed to raise funds up to Rs 100 crore by issuance of Global Depository Receipts (GDRs). The firm, however, failed to come out with the issue.
Besides, the firm in its corporate announcements recommended dividend of 10 per cent per equity share for the year 2009-10 and 5 per cent per share for 2010-11 but did not implement the same, the market watchdog noted.
Sebi observed that Ranklin induced the investor by fraudulently planting a misleading announcement on issuance of GDRs or ADRs (American depositary receipt) and declaration of dividend.
Further, Ranklin failed to make disclosures with respect to non-implementation of these announcements to the exchange.
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By making false announcements, the firm violated PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) norms, the regulator noted.
Moreover, the firm contravened provisions of listing agreement as well as the Securities Contract (Regulation) Act by not informing the exchange about cancellation of dividend and non-implementation of its decision to issue GDRs to the shareholders, it added.
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