On Monday, SEBI imposed fines totalling Rs 25 lakh on Aadhaar Ventures India Ltd (AVIL) and its directors for violating listing conditions and insider trading rules. The market regulator levied a fine of Rs 10 lakh on AVIL’s directors – Somabhai Sunderbhai Meena, Jils Raichand Madan, and Jyoti Munver for disclosure lapses. SEBI also imposed a penalty of Rs 5 lakh on AVIL and Meena for defying insider trading norms.

Sebi had investigated alleged price manipulation in the AVIL scrip early. The investigation revealed that AVIL had made corporate announcements associated with acquiring a company in Africa and setting up an overseas subsidiary in Singapore, according to SEBI, which was price-sensitive information. However, the firm did not provide the information to the BSE despite several reminders sent by the latter.

Munver, being AVIL’s compliance officer, failed to ensure that the firm had complied with continuous disclosure requirements, thereby violating PIT (Prohibition of Insider Trading) rules.

The penalty levied, however, would be subject to the outcome of SEBI’s appeal pending before the Supreme Court. Section 23E in the Securities Contracts (Regulation) Act is associated with listing conditions.

Incorporated in 1995, Aadhaar Ventures India Ltd. is engaged in financing long-term and short-term loans, consultancy and supervisory services, leasing, bill discounting etc.

In a separate order, the capital market regulator slapped a fine of Rs 10 lakh on BRH Wealth Kreators Ltd for violating regulatory norms. The order was issued after the regulator initiated an examination for possible violations pertaining to the issuance of securities by BRH Wealth Kreators Ltd.