Regulator Sebi Thursday slapped a fine of over Rs 1 crore on Basil International Ltd and its three individuals for not complying with earlier orders to refund money pooled from investors.
Susanta Kumar Jana and Nirmalendu Bhowmik are present directors of the firm, while Mohammed Afaque Ahmed is a former director, according to Sebi's order.
The regulator in May 2013 had asked the firm and its directors not to collect any money from the investors it was found that the firm had pooled Rs 92 crore till March 2012 from various investors through issuance of redeemable preference shares (RPS) in violation of public issue norms.
Subsequently, in February 2015, the regulator directed the entities to refund the money to investors.
In its fresh order, the regulator has said the entities not only failed to refund the money as directed but also collected about Rs 5 lakh even after the May 2013 order.
"Failure to comply with direction for refund and directions prohibiting raising of further money/funds is a serious irregularity affecting the interest of a large number of investors, who were duped into giving further funds into schemes held to be in violation of law," the regulator said.
The quantum of penalty needs to be sufficient to deter such non-compliance in order to safeguard the interest of investors, it added.
Accordingly, a fine of Rs 1 crore was imposed on the firm and two directors to be paid ''jointly and severally.''
Apart from the Rs 1 crore fine, a separate fine of Rs 10 lakh was levied on Ahmed, two present directors and the firm.
In a separate order, Sebi slapped a total penalty of Rs 14 lakh on two promoters of Action Financial Services for failing to make requisite disclosures upon change in their shareholding in the firm.
Milan Ramniklal Parekh and Bakul Ramniklal Parekh are the two promoters.
Besides being promoters, Milan Ramniklal Parekh is also the chairman and managing director of the company while Bakul Ramniklal Parekh is a joint manager director of the firm.