Special judge V C Barde also imposed a fine of Rs 10 lakh on Parekh and his relative Kartik. The court had found them and their company guilty of non-payment of penalty.
Karthik was later granted bail by the court.
According to the SEBI, it had found that the acquisition of shares of Shonkh Technologies International was made in violation of the SEBI Act. After this, an adjudication process was initiated and the presiding officer imposed a penalty of Rs 6,50,000 of them.
Later, they filed an appeal in the Securities Appellate Tribunal, however, it was dismissed in 2007.
The accused had offered demand draft of part payment of penalty as an installment but the adjudicating officer refused. The DD was not accepted as there is no provision for deferring payment of penalty.
Later, SEBI approached the special court. Even in the special court the accused prayed for compounding the offences but the court rejected it.