For the first time ever, capital market regulator Securities and Exchange Board of India (SEBI) has imposed a term of civil imprisonment for a violation. Vinod Hingorani, Non-Executive Chairman of Adam Comsof and Kolar Biotech, was ordered to undergo six months’ civil imprisonment for failure to pay penalties of around ₹1.64 crore (including interest) levied under three SEBI notices from last July demanding payment.
Also, he did not appear in person when directed, in November 2014, and stated in a letter that he was Non-Executive Chairman of the companies and had no role. Hingorani further stated that he was an employee Director at Kolar Sharex Pvt Ltd and did not receive any monetary benefit.
He also said that his bank accounts had been frozen by SEBI and the Economic Offences Wing and had no movable or immovable property.
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