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The Securities Appellate Tribunal (SAT) has asked a Pyramid Saimira former independent director to pay the balance of the penalty imposed by SEBI before September 30 so as to avail waiver of interest.
The capital market regulator SEBI on July 29, 2011 had imposed a penalty of Rs 25 lakh on G Ramakrishanan for his alleged involvement in making false and misleading disclosures with regard to Pyramid Saimira which had impacted the price and volume of the firm’s shares and misled the investors.
Of the Rs 25 lakh fine, Ramakrishanan has paid Rs 12 lakh and currently needs to pay the balance amount of Rs 13 lakh.
Subsequently, Ramakrishanan had approached before SAT seeking permission to pay balance penalty amount in 16 installments without payment of interest.
Accordingly, he had submitted to SAT that he would pay the balance penalty amount, irrespective of instalments, latest by September 30, 2014, and in that event the market regulator be directed by the tribunal to waive interest.
“If appellant (Ramakrishnan) pays the balance penalty amount of Rs 13 lakh on or before September 30, 2014, SEBI shall consider the application of appellant for waiver of interest sympathetically,” SAT said in a order on August 21.
As per SEBI norms, entities are liable to pay interest for any delay in payment of penalty.
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