The SEBI has fined 23 firms a total of Rs 50 lakh for violating regulations

On Wednesday, the Sebi Capital Markets Regulator, directed by Unisys Software and Holding Industries Ltd., fined 23 organizations a total of $50 million for violating securities rules. The lawsuit concerns Unisys, which provided financial support to holders of preferred stock and allowed those beneficiaries to subscribe and purchase shares it beneficially granted in March 2011. The latest order was placed after Sebi reviewed the Unisys script between January 2010 and November 2014.

     

The company and its promoters were found to have played a complex role in creating a fraudulent scheme that involved funding transferees through various channels to subscribe to Unisys' preferred issue. They defrauded investors by giving the impression of injecting capital through preferential distribution, thus limiting the actual injection of capital into the company and thus violating the PFUTP (Prohibition of Fraudulent and Unfair Business Practices), the injunction said. In addition, the regulator found that Unisys repeatedly provides incorrect quarterly information about the share ownership structure on the exchanges.