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SEBI orders prison term for Kolar Biotech chairman

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)