Major crackdown on Indiabulls, SEBI imposes total fine of Rs 1.05 crore on company officials

Market regulator SEBI on Wednesday imposed a total fine of Rs 1.05 crore on Indiabulls Venture and some of its affiliates for violating market rules.

New Delhi. Market regulator SEBI on Wednesday imposed a total fine of Rs 1.05 crore on Indiabulls Venture and some of its affiliates for violating market rules. The company is currently working under the name Dhani Services. The Securities and Exchange Board of India (SEBI) has imposed a fine of Rs 25-25 lakh on former Indiabulls Non-Executive Director Pia Johnson her husband Mehul Johnson for violating The Prohibition of Sheep Trade (PIT) rules. 



The regulator has imposed the penalty on them for trading the stock during the period of issue of unpublished sensitive price information. Pia and Mehul had made a collective profit of Rs 69.09 lakh from it. According to SEBI, the matter was investigated between January-November 2017. In another order, SEBI imposed a fine of Rs 50 lakh on Indiabulls Venture for not issuing notice of ban on sale of shares in the market during the respective period and rs 5 lakh on its secretary Lalit Sharma for not monitoring the closure of the market.

Banks to take action against private guarantors

The Supreme Court on Friday upheld the validity of the Centre's notification allowing banks to take action against individual guarantors for recovery of loans under the Insolvency and Bankruptcy Code (IBC). A bench of Justices L Nageshwar Rao and S Ravindra Bhat said that the approval of the solution scheme under IBC does not eliminate the liability of individual guarantors towards banks. 

Justice Bhat read out the findings of the verdict and said, "In the judgement, we have upheld the notification. ''The petitioners had challenged the Notification dated 15th November 2019 issued under IBC and other provisions, which relate to those who give personal guarantees to corporate debtors. Upholding the validity of the notification, the apex court said that the introduction of insolvency resolution scheme for a company does not eliminate the corporate guarantee given by individuals towards payment of dues to financial institutions. 

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