The Securities Appellate Tribunal (SAT) has reduced the penalty imposed by Sebi on an individual from Rs 6 lakh to Rs 3 lakh in relation to non-compliance with the market regulator's summons over probe in affairs of erstwhileBank of Rajasthan (BoR).

Securities and Exchange Board of India (Sebi) had slapped a fine on Dilip S Mehta, owner of a chartered accountancy firm, last year.

In its order yesterday, SAT observed that non-compliance to summons is violation of the provisions of law and entailed penalty.

"Even if the appellant had no information to furnish, he should have said so and responded to the summons," it said.

However, the tribunal, added that "in the peculiar facts and circumstances of the case, we are of the view that ends of justice would be met by reducing the penalty to Rs 3 lakhs".

In 2011, Sebi had issued two summons to Mehta to examine his link to Sangeeta Sawant, director of large number of firms alleged to be connected to the promoters, which were buying and selling shares of BoR.

In relation to the first summon, Mehta submitted that he was under the impression that it had been wrongly addressed to him. Further, he said he had not received the second summon.

"Even if we accept the argument of the learned counsel for the appellant that the second summons was not received, the fact remains that the appellant has not responded to the first summons issued on February 23, 2011," SAT noted. (ET)