Stock market regulator SEBI has fined promoters of the erstwhile Bank of Rajasthan Pravin Kumar Tayal, Sanjay Kumar Rampratap Tayal, Saurabh Pravin Tayal and Navin Kumar Tayal Rs 5 crore each for violating the Prohibition of Fraudulent and Unfair Trade Practices Regulations.
SEBI fined a total of Rs 30.75 crore on 118 entities — four were fined Rs 5 crore each, 10 were fined Rs 18 lakh, one was fined Rs 15 lakh, seven were slapped with Rs 13 lakh fine, four have to pay Rs 10 lakh each, 63 have to cough up Rs 8 lakh each and 29 have to shell out Rs 5 lakh each.
Ten out of these 118 entities also have to pay Rs 10 lakh jointly for violating Substantial Acquisition of Shares and Takeovers Regulations.
While investigating into the affairs of Bank of Rajasthan, SEBI found that the promoters led by P.K. Tayal along with some companies disclosed that their stake had come down from 44.18 per cent as on quarter ending June 2007 to 28.61 per cent as on quarter ending December 2009.
Investigation threw up the fact that in reality the holding of the promoters actually increased with the active collusion of front entities.