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Sebi slaps over Rs 25 cr on two entities in GDR manipulation case
Capital markets regulator Sebi on Tuesday imposed a penalty totalling Rs 25.2 crore on two individuals in a case related to the manipulation of global depository receipt (GDR) issuance of Hiran Orgochem Ltd.
Individually, the regulator levied a fine of Rs 25 crore on Arun Panchariya and Rs 20 lakh on Mukesh Chauradiya. They have been directed to pay the amount within 45 days, according to a Sebi order.
The direction came after the Securities and Exchange Board of India (Sebi) conducted an investigation to ascertain whether shares underlying GDRs of Hiran Orgochem Ltd were issued with proper consideration. The period under investigation was from April 2010 to May 2010.
Hiran, which is listed on the BSE, issued 15.38 lakh GDRs amounting to USD 10 million representing 4.61 crore underlying equity shares in May 2010.
In its order, Sebi found that Panchariya was the key person actively involved in the GDR process of Hiran at every stage and perpetrated fraud on the investors in the Indi