The Securities Appellate Tribunal today upheld Sebi's order against two former promoters of erstwhile Bank of Rajasthan (BoR) with regard to manipulative practices in the stock market during 2007-2009 period.
The tribunal upheld the penalty of Rs 4 crore each on BoR's promoters -- Sanjay Kumar Tayal and Pravin Kumar Tayal.
However, fine of Rs 1 crore imposed on each of them by Sebi has been set aside. The penalty was slapped for non-compliance with the market regulator's summons.
Through today's common judgement, the tribunal has decided on 14 appeals filed by 118 entities -- nine public limited and 93 private limited companies as well as 16 individuals.
The Securities and Exchange Board of India (Sebi) had found violations of norms by the BoR's promoter group controlled by Tayal family and other entities by indulging in fraudulent and unfair trade activities.
Later, penalties were imposed on various entities by the watchdog on February 14, 2013.
The market regulator investigated the matter during the period between June 2007 and December 2009.
Apart from two Tayals, SAT upheld penalties imposed on various other entities in the same case.
Among others, with regard to 11 entities, that were part of BoR's promoter group, the tribunal has upheld penalty Rs 15 lakh on each of them.
A fine of Rs 10 lakh was slapped under Section 15HA, Rs 3 lakh under 15A(a) and Rs 5 lakh under 15A(b) of Sebi Act. These sections related to fraudulent activities.
"... Penalty imposed under Section 15HA and 15A(b) against each appellant in both appeals are upheld and penalty imposed under Section 15A(a) of SEBI Act against each appellant in both appeals are set aside," SAT said.
