SEBI imposes Rs 1 cr penalty on Sicorp Finlease, six others

Market regulator SEBI has imposed a penalty of Rs 10000000 on six individuals and one company for non-compliance with its earlier order issued with regard to manipulation of share prices of G-Tech Info Limited "Considering all the facts and circumstances of the case ... impose a penalty of Rs one0000000 on the Noticees viz Prasad Tandel, Prakash D' Souza, Prashant Narvekar , Ashok Sonu Bhagat, Sicorp Finlease Limited Sandhya Shirish Shah and Pravina Chandrakant Shah jointly and severally," the Securities and Exchange Board of India (SEBI) said in an order.The six individuals, who served as directors in Sicorp Finlease, had earlier been found involved in manipulation of share prices of G-Tech Info in 2003. They had failed to make mandatory public announcement even after acquiring 15% of G-Tech's shares and going for further increase in stakeholding.SEBI had in October last year directed the entities to pay interest at 10% per annum to shareholders of G-Tech Info Training on the offer price of shares for loss of interest caused to them due to delay in making the announcement.They were also asked to make public announcement in this regard to the shareholders of G-Tech Info within 45 days.However, the noticees failed to carry out the directions and SEBI has in September this year issued a show cause notice to them."The Noticees had not submitted any reply to the show cause notice. In the absence of any reply from the Noticees, the Adjudicating Officer considered the facts of the case and other materials available on record and decided to conduct an inquiry in the matter," SEBI said.In its order, the regulator further said "... it is established beyond doubt that the Noticees failed to comply with the directions issued by SEBI and the non compliance of the same resulted in contravention of Section 15HB of the SEBI Act which warrants imposition of monetary penalty under the said Section of the SEBI Act."The seven entities have been directed to deposit the fine amount within 45 days.Under joint and several liability, a claimant can pursue an obligation against any one party as if they were jointly liable and it becomes the responsibility of the defendants to sort out their respective proportions of liability and payment.As such, if the claimant pursues one defendant and receives payment, that defendant can pursue the other obligators for a contribution to their share of the liability.