DSQ probe: Sebi official slaps Rs 1 cr fine on Parekh firm

Amit Pradhan, the Sebi-appointed AO, in his order said, “I am fully satisfied that this case deserves a severe penalty since it’s a matter of multi crore fraud amounting to Rs 220 crore. Specifically, LIL held 10.60 lakh shares of DSQ, whose ‘value at fraud’ works out to Rs 29 crore; these shares were sold in the market at a value of Rs 16 crore.”

“LIL did not disclose the source of availability of these 10.6 lakh shares when this information was sought from LIL by issuing summons. In other words, it can be said that there is an undue enrichment equivalent to the said amount to LIL,” he said.

He said 348 days have elapsed since the violation occurred and the violation continues till date.

Sebi is empowered to impose penalty of Rs 1 lakh per day of the violation or Rs 1 crore, whichever is the less, in such cases.