Mumbai: The special SEBI court has convicted senior citizen Bela Kayastha for failure to pay the penalty amount of Rs 2 lakh imposed on her in March 2010. The court has sentenced her to pay the fine of Rs 7 lakh out of which Rs 2 lakh would go to SEBI.
As per the prosecution case, SEBI has conducted an investigation into the trading of script of TASC Pharmaceuticals Ltd on the basis of reports received from the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) for abnormal price rise during August 4, 2003 to December 15, 2003.
The investigation report revealed that the accused entered into circular /reversal trades and thereby, indulged in creation of a false market in the script of TASC Pharmaceuticals Ltd, by way of order book manipulation. Therefore, an adjudication officer was appointed on May 18, 2009. The officer after conducting the proceeding imposed a penalty of Rs 2 lakh.
The prosecution claimed that the order was communicated to her on March 31, 2010. However, as she failed to deposit the amount, the SEBI had launched criminal prosecution before the special court in October 2021.
Kayastha’s lawyer contended that she has compounded the earlier matter by paying the penalty and she is unable to pay any further amount on account of her financial condition.
Showing leniency, the court observed, “Considering the nature of gravity of the offence and looking at the age, ailments and the fact that the accused is a lady I found that the custodial incarceration would not be the proper punishment. I hold that the accused is required to be punished by imposing fine.” The court has now imposed a penalty of Rs 7 lakh on her.
