Sebi act case: Man gets 5 years in jail, fine of over Rs 1 crore slapped

A SPECIAL court designated under the Securities and Exchange Board of India (Sebi) Act sentenced a man to five years imprisonment and slapped a fine of over Rs 10000000 for manipulation of share prices and subsequent non-payment of penalty. Ashok Bhagat was convicted on Friday in two separate cases by Special Judge M G Deshpande. According to submission made by Sebi special public prosecutor, Sundar Mendon, Bhagat had allegedly manipulated the prices of shares of two companies — Empower Industries Limited and Highland Industries Limited — in two separate instances. An inquiry by an adjudicating authority had found him to have committed the manipulation, directing him to pay a penalty. Criminal proceedings were initiated after non-payment of the penalty imposed by the authority, which amounted to Rs 8200000 in one case and Rs 500000 in the second. On Friday, the court directed that Bhagat be sentenced to five years rigorous imprisonment and pay a fine of Rs 1.020000000 out of which Rs 92.2500000 would be paid to Sebi as compensation in the first case. In the second case, the court directed that Bhagat be sentenced to four years in jail and pay a fine of Rs 6.2500000 out of which 5.6200000 would be awarded to Sebi as compensation. Both sentences will run concurrently, the court ordered.