MUMBAI (Reuters) - The Securities and Exchange Board of India (SEBI) on Thursday ordered the imprisonment of the non-executive chairman of Kolar Biotech Ltd for failing to pay a penalty for making misleading disclosures.
This is the first time SEBI has ordered the imprisonment of a defaulter since it was given expanded powers by a constitutional amendment last year.
SEBI said Vinod Hingorani, non-executive chairman and a major shareholder of Kolar Biotech, was ordered to serve six months in prison for not paying 16.5 million rupees ($262,000) in fines.
Hingorani and other major shareholders of Kolar were charged in 2010 with providing misleading information to the market to boost the company's share price.
(For the SEBI order, see http://bit.ly/1wHQmDt)
($1 = 63.0700 rupees)
(Reporting by Himank Sharma; Editing by Prateek Chatterjee)