Markets regulator Sebi Friday slapped a fine of Rs 1 crore on a former promoter of DSQ Software for failing to comply with its directions passed more than 14 years ago.
Dinesh Dalmia failed to buy back 1.30 crore shares as directed by the watchdog, which had found him guilty of fraudulent trading in 2004.
Sebi carried out an investigation into sharp fluctuation in the company's share price during 1999-2001 period. The price of shares fluctuated from Rs 250 in October 1999 to Rs 2,631 in March 2000 and then to Rs 150 by March 2001.
It was found that Dalmia had fraudulently issued shares in the secondary market.
For non-compliance with its directions, Sebi has imposed a fine of Rs 1 crore on Dalmia.
"The noticee (Dalmia), by not complying with the directions of Sebi has committed a serious violation which would attract the maximum penalty.
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"Although the penalty amount would not help in restituting the investors but it will ensure that a message is sent to everyone that non-compliance of Sebi orders would not be treated lightly," the regulator said in an order on Friday.
In 2004, the watchdog directed the individual to buyback 1.30 crore shares of the company but the order was challenged in the Securities Appellate Tribunal (SAT) and then in the Supreme Court.
In 2016, the Supreme Court directed Dalmia to deposit Rs 30 crores with Sebi within six months. In case he failed to deposit the money, then Sebi's order passed in 2004 would "stand revived."