Non-cooperative attitude costs broker Rs 5 lakh

MUMBAI: Market regulator Securities and Exchange Board of India (SEBI) on Wednesday imposed a fine of Rs five lakh on a stock broker for not cooperating in inquiry on dealings in a computer consultancy firm.

"I impose a penalty of Rs 5 lakh on Ramesh K Jain in terms of the provisions of section 15A (a) of the SEBI Act, 1992 for failure to provide necessary information to SEBI", the adjudicating officer Biju S said in his order.

Jain will have to pay the fine within 45 days of the receipt of the order.

During the course of investigation in the dealings of Aditya Infosoft scrips, SEBI sought details of the shares traded by Jain, his association with promoters and directors and associate companies of the company, mode and source of payment to brokers, details of off-market deals and copy of demat accounts.

Jain, however, did not reply to several notices of SEBI and made a plea that he was not well.

Rejecting the contention of Jain, SEBI order said: "...in view of the fact that the investigating authority issued as many as eight notices and letters during the period October, 2004 to September, 2005. Non response of the notices issued to the noticee during a span of one year indicates that the noticee is deliberately adopting a non cooperative attitude."