The regulator of stock exchanges, Securities and Exchange Board of India (SEBI), has imposed a fine of Rs16 lakh on Roopal Panchal and her son, Arjav Panchal, after it found them guilty of irregular trading in IPOs of 16 companies.
On Tuesday, chief general manager and adjudicating officer, SEBI, D Ravi Kumar, issued an order imposing fines on the Panchals.
“I hereby impose a penalty of Rs15 lakh on Roopal Nareshbhai Panchal and a penalty of Rs1 lakh on Arjav Nareshbhai Panchal....I am of the view that the said penalty is commensurate with the violations committed,” the SEBI official said in his order.
Investigation by the Sebi had revealed that Roopal Panchal and her son had acted as key intermediaries in the scam and had allegedly made Rs45 crore from 16 IPOs.
SEBI had found them guilty of indulging in fraudulent and manipulative activity and employing deceptive schemes to corner the shares reserved for retail investors in the 16 IPOs with the intention to defraud retail individuals. The penalty has to be paid within 45 days of receipt of the SEBI order.
According to the order, Roopal Panchal had acquired funds from nine financers, who had also received corresponding shares and refunds from her.
An examination of various bank accounts of Roopal had revealed that she had used the money received from financiers to pay for the margin requirement of banks, the SEBI order says. The financiers who had given money to Roopal include Hashmukh Vora, Excell, Tauraus, Zenet, Seer, Jayesh Khandwala, Gautam Jhaveri, Welvet, Rajan and Shilpa Dapki.
—With Agencies
Comments