SEBI Penalizes Royal Twinkle Star Club for Non-Compliance
Securities and Exchange Board of India (SEBI) imposed a 50 lakh fine on Royal Twinkle Star Club and its directors for defying a ban on raising public funds. Despite a 2014 order, funds continued flowing due to decentralized operations and auto-debits. SEBI dismissed their defenses, citing investor harm.
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The Securities and Exchange Board of India (SEBI) has imposed a substantial fine of Rs 50 lakh on Royal Twinkle Star Club and its four directors for flouting an earlier directive. The directive prohibited them from gathering funds from the public, yet they persisted in their actions.
Directors Omprakash Basantlal Goenka, Prakash Ganpat Utekar, Venkatraman Natrajan, and Narayan Shivram Kotnis are jointly responsible for the penalty. The infraction stems from continued fund collection post-March 2014, despite explicit prohibitions outlined in SEBI's directive to halt all such activities immediately.
SEBI's investigation revealed the directors' defense of inadvertency due to auto-debit mandates and decentralized operations was inadequate. The regulator emphasized the ongoing inflows breached its mandate and were detrimental to investor interests, undermining the safeguards SEBI intended to enforce.
(With inputs from agencies.)
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