Mumbai: A special Sebi court on Tuesday convicted Ketan Parekh and his relative in a securities scam for violating the Sebi Act and sentenced them to three years in jail.
Special judge V.C. Barde also imposed a fine of Rs10 lakh on Parekh and his relative Kartik. The court had found them and their company guilty of non-payment of penalty. Karthik was later granted bail by the court.
According to the Securities and Exchange Board of India (Sebi), it had found that the acquisition of shares of Shonkh Technologies International was made in violation of the Sebi Act. After this, an adjudication process was initiated and the presiding officer imposed a penalty of Rs6,50,000 of them.
Later they filed an appeal in the Securities Appellate Tribunal however it was dismissed in 2007. The accused had offered demand draft of part payment of penalty as an instalment but the adjudicating officer refused. The DD was not accepted as there is no provision for deferring payment of penalty.
Later Sebi approached the special court. Even in the special court the accused prayed for compounding the offences but the court rejected it.livemint