SEBI Imposes Significant Fines on Sharepro and Its Senior Officials
India’s market regulator, the Securities and Exchange Board of India (SEBI), has slapped a hefty penalty on Sharepro Services Pvt Ltd and 13 of its key personnel, citing violations of regulatory norms. The fines imposed aggregate to an amount of INR 33 crores, with individual penalties ranging from INR 1 lakh to INR 15 crores.
The Vice President of Sharepro, Indira Karkera, has been fined INR 15.08 crores, while the Managing Director, Govind Raj Rao, faces a penalty of INR 5.16 crores. Apart from these two, SEBI has also penalized Balram Mukherjee, Pradeep Rathod, Shrikant Bhalkiya, Anil Jathan, Chetan Shah, Sujit Kumar Amarnath Gupta, Bhawani Jathan, Anand S Bhalkiya, Dayanand Jathan, Mohit Karkera, and Rajesh Bhagat.
Misuse of Dividends and Securities
SEBI highlighted in its 200-page order that there was a fraudulent misuse of securities belonging to genuine shareholders, amounting to a minimum of INR 60.45 crores, based on the value of the shares in October 2016. Furthermore, dividends worth INR 1.41 crores were misappropriated.
Additionally, the regulator noted that there was misuse of some non-listed securities belonging to the actual shareholders. In July 2020, SEBI had imposed restrictions on Sharepro Services and its officials, following these revelations.
The action by SEBI underscores its commitment to maintaining the integrity of India’s financial markets and protecting the interests of genuine shareholders. Such measures are crucial in bolstering investor confidence and ensuring that companies and individuals adhere to the highest standards of transparency and accountability.
News Source: Zeebiz