A special court here has convicted a 64-year-old woman for failing to pay a fine of Rs 5 lakh imposed by market regulator SEBI in 2012 for 'circular trading'.
While she had violated rules of stock market trading in 2005, the court's order came on September 4, ten years after the prosecution was launched for non-compliance.
However, considering her age and medical condition, the court did not pronounce any jail term, but directed Shila Baburao Suryawanshi to pay a fine of Rs 7 lakh.
"Considering the nature of gravity of the offence and looking to the age and ailments of the accused I found that the custodial incarceration would not be the proper punishment," the special court for Securities and Exchange Board of India cases said.
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The ends of justice will be met by imposing a fine on her, it ruled.
Circular trading refers to fraudulent buying and selling of shares to manipulate a stock price.
SEBI had conducted a probe pertaining to trading in the shares of Prraneta Industries Limited (PIL) for the period between January 10, 2005, and May 12, 2005, and found violations under the Prohibition of Fraudulent and Unfair Trade Practices (PFUTP) Regulations.
The adjudication officer, appointed by SEBI, imposed a penalty of Rs 5 lakh on the accused on February 29, 2012.
As the woman failed to comply, criminal prosecution was launched on September 11, 2014. Ten years later, Suryavanshi was found guilty by the special court.
