New Delhi
Markets regulator SEBI has said in an order that the larger public purpose of investor protection would stand defeated if the violators are allowed to go scot-free just because of delay in initiating action against them.
The SEBI said this in an adjudication order where it imposed a penalty of Rs 2 lakh on Williamson Magor and Company Ltd (WMCL).
It is to be noted that the SEBI Act, 1992, and the regulations framed thereunder, have got a larger public purpose in the form of investor protection and the regulation and development of the securities market. These purposes would stand defeated if the violators are allowed to go scot-free just because of a delay in initiating action against them, SEBI said.
In view of the above facts, I find that no prejudice has been caused upon the notice nor has it been able to clearly make out a case of prejudice due to the alleged delay in the initiation of proceedings, the order read.
It was alleged in the complaint that WMCL entered into a related party transaction with Babcock Borsig Ltd., its associate company, involving the sale of 1,13,360 shares (‘transaction’) of Woodlands Multispecialty Hospital Ltd, without corporate approvals and without making appropriate disclosures under the accounting standards.
