A special court of the Securities and Exchange Board on Tuesday convicted Panther Fincap and Management Services Ltd directors Ketan Parekh and Kartik Parekh and sentenced them to three years in jail for violating rules.
Special judge VC Barde ordered them to pay a fine of Rs 5 lakh each. However, Kartik Parekh was granted bail soon after, reported PTI.
The two were found to have violated the SEBI Act while acquiring the shares of Shonkh Technologies International. They had bought the shares beyond the permissible limit, reported The Indian Express. After an inquiry, the company and its directors were fined Rs 6.5 lakh.
The accused then filed an appeal in the Securities Appellate Tribunal. The appeal, however, was dismissed in 2007. As the company and its directors failed to pay the penalty, SEBI filed a criminal case, reported the Hindustan Times.