Mishtann Foods fined for non-compliance to Sebi orders

Sebi slaps Rs 15 lakh fine on Mishtann Foods for non-compliance with its directions

Credit: Reuters file photo.

Markets regulator Sebi on Friday imposed a fine of Rs 15 lakh on Mishtann Foods Ltd for non-compliance with its directives.

In February, Sebi warned the company to be careful in resolving investors' complaints within the timeline as specified in the circulars issued by the regulator from time to time.

Besides, the company was directed to take urgent steps to resolve pending complaints.

Mishtann Foods was earlier known as HICS Cements Ltd.

However, the watchdog observed that only in August that the company issued letters to investors regarding their complaints. A majority of the complaints pertained to non-receipt of shares after conversion/ endorsement/ consolidation/ splitting, as per the order issued on Friday.

In a separate order on Friday, the regulator imposed a fine of Rs 10 lakh on Prudent Broking Services Pvt Ltd (PBSL) for misusing clients' funds and securities.

PBSPL is a Sebi-registered stockbroker and depository participant.

The inspection team of Sebi found that the broker has misutilised the funds of credit balance clients for debit balance clients and also failed to maintain segregation of clients' funds.

Besides, it had not settled the accounts for 26 inactive clients and the amount of non-settlement of credit balance funds was Rs 13.08 lakh, according to the order.

Sebi also said the broker had not submitted the daily reconciliation statement at the time of inspection to the inspection team.

Separately, Sebi on Friday levied a penalty of Rs 2 lakh on Sai Prakash Properties Development Ltd for its failure to comply with the summons issued by the regulator.

In another case, the regulator on Friday slapped a Rs 2 lakh fine on N G Export Industries Ltd for its failure to obtain SCORES authentication and non-redressal of the pending grievances of fourteen investors within the specified timeline.

Sebi has also imposed a fine of Rs 1 lakh on eight individuals and the amount is payable jointly or severally for disclosure lapses in the matter of Centum Electronics Ltd, as per an order passed on Friday.

In a separate order, the regulator imposed a penalty of Rs 1 lakh on an individual for disclosure lapses while dealing with the scrip of Equitas Small Finance Bank Ltd.

P Selvamani, being a senior employee of Small Finance Bank Ltd, in the instant case had failed to intimate the company within the stipulated period about a sale transaction of the company's shares, Sebi said in the order issued on Friday.

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