Markets regulator Sebi has issued a demand notice to Arun Panchariya, asking him to pay about Rs 26.25 crore in a case on manipulation of global depository receipts (GDRs) issuance by Hiran Orgochem Ltd. In its notice issued on November 23, the regulator has also warned Panchariya of arrest and attachment of assets as well as his bank accounts if he fails to make the payment within 15 days. The demand notice came after Panchariya failed to pay the fine imposed on him by the Securities and Exchange Board of India (Sebi) in July. In its notice, Sebi directed Panchariya to pay Rs 26.25 crore, including interest and recovery costs, within 15 days. In the event of non-payment of dues, the market watchdog will recover the amount by attaching and selling the moveable and immovable property of Panchariya. Besides, he will also face attachment of his bank accounts and arrest. In July, Sebi imposed a penalty of Rs 25 crore on Panchariya and Rs 20 lakh on Mukesh Chauradiya for manipulation
Capital markets regulator Sebi on Tuesday imposed a penalty totalling Rs 25.2 crore on two individuals in a case related to the manipulation of global depository receipt (GDR) issuance of Hiran Orgochem Ltd. Individually, the regulator levied a fine of Rs 25 crore on Arun Panchariya and Rs 20 lakh on Mukesh Chauradiya. They have been directed to pay the amount within 45 days, according to a Sebi order. The direction came after the Securities and Exchange Board of India (Sebi) conducted an investigation to ascertain whether shares underlying GDRs of Hiran Orgochem Ltd were issued with proper consideration. The period under investigation was from April 2010 to May 2010. Hiran, which is listed on the BSE, issued 15.38 lakh GDRs amounting to USD 10 million representing 4.61 crore underlying equity shares in May 2010. In its order, Sebi found that Panchariya was the key person actively involved in the GDR process of Hiran at every stage and perpetrated fraud on the investors in the Indi
The Securities Appellate Tribunal has slashed the penalty imposed by Sebi on Jindal Cotex Ltd (JCL) to Rs 25 lakh from Rs 10.3 crore in a case related to manipulation in the issuance of global depository receipts. Also, the appellate tribunal reduced the fine on JCL's Managing Director Sandeep Jindal to Rs 10 lakh from Rs 20 lakh. However, it affirmed the penalty imposed on Rajinder Jindal and Yash Paul Jindal who was Whole Time Director and Chairman of JCL, respectively, saying the fines were neither arbitrary nor excessive. "In our opinion, the penalty imposed is "excessive" and disproportionate to the violation and is also discriminatory. "The company is a running concern. Penalising the firm with such a heavy penalty is in fact penalising the shareholders, which is not justifiable especially for a running company," the appellate tribunal said in its order dated February 23. The ruling came after JCL, Sandeep Jindal, Rajinder Jindal and Yash Paul Jindal challenged the order pa
Sebi on Tuesday levied fines totalling Rs 20 lakh on PVR Murthy in the manipulation of global depository receipts (GDR) of Birla Cotsyn (India) Ltd and Zenith Birla (India) Ltd (now known as Zenith Steel Pipes & Industries). In two separate orders, the regulator slapped a fine of Rs 10 lakh each on PVR Murthy. The order came after the Securities Appellate Tribunal (SAT) in its ruling on November 2022, set aside two different Sebi orders passed on May 2022 and June 2022, in the matter of Birla Cotsyn and Zenith Birla and remanded the matter back to the markets watchdog and pass a fresh one. The regulator conducted its investigations into the alleged irregularities in the GDR of Birla Cotsyn (India) Ltd (BCIL) and Zenith Birla (India) Ltd (ZBIL) during the period February-April 2010 and May-June 2010, respectively. The regulator found in its investigations that the GDR issue would not have been subscribed had ZBIL and BCIL not given any such security towards the loan taken by ...
It was observed that Commex had issued 19,06,790 GDRs raising USD 9.99 million in May 2009 and the entire GDR were subscribed by only one entity -- Vintage FZE
The directors facing the fine are Ashish Bagrodia, Manish Bagrodia and Satish Girotra
Pan Asia Advisors Ltd, a UK based entity, was the lead manager for the firm's GDR issue
Cracking the whip in a GDR manipulation case related to Zenith Birla (India) Ltd, Sebi on Tuesday barred six individuals and seven entities from the securities market for varying periods
Sebi has barred two entities and five individuals for indulging in fraudulent trading activities with respect to GDR issuance by Soma Textiles & Industries Ltd. Soma Textiles & Industries Ltd "is hereby restrained from accessing the securities market...directly or indirectly...for a period of 3 years from the date of this order," Sebi said in an order passed on Monday. Others facing the prohibition are -- SK Somany, AK Somany, P Bandopadhyay, Prafull Anubhai, Sunil Patel and Whiteview Trading Corporation. The ban has been imposed for a period ranging from 1-3 year. An investigation was conducted by Sebi with respect to the GDR (Global Depository Receipt) issuance by the company during October 1-31, 2006. The regulator in its investigation observed that Soma had issued GDRs amounting to USD 17.29 million. It was noted that the entire GDR proceeds were subscribed to only one entity -- Whiteview Trading Corporation (Whiteview). It was also observed that the subscription amount ...
Sebi noted that Reddy was part of the fraudulent scheme and arrangement of Farmax India in executing the scheme of financing its own GDR issue
Through two separate orders, Sebi noted that the firm issued 1.44 million GDRs amounting to USD 5 million in July 2008 and 2.49 million GDRs worth USD 10.54 million in June 2010
Markets regulator Sebi has barred four individuals in connection with manipulation in the issuance of global depository receipts by Birla Cotsyn (India) Ltd back in 2010
Markets regulator Sebi on Tuesday slapped a fine totalling Rs 20.65 crore on Aqua Logistics Ltd, its directors and three other individuals for manipulation in issuance of global depository receipts
The regulator has directed Farmax to continue to pursue the measures to bring back the outstanding amount of $72.20 million into its bank account in India, according to an order
The regulator has directed Farmax to continue to pursue the measures to bring back the outstanding amount of $72.20 million into its bank account in India
In a separate order passed on Thursday, Sebi levied a total penalty of Rs 10.25 crore on Beckons Industries Ltd in a matter related to manipulation in issuance of GDR.
The order follows a probe conducted by the regulator between August-September 2010.
Sebi has banned the officials from accessing securities market for varying periods between one year to three years.
During the probe, Sebi observed that the entire 1.51 million GDRs were subscribed by only one entity, Vintage FZE (now known as Alta Vista International FZE).
The regulator in a probe conducted between November-December 2010 noted that the firm had issued 1.12 million GDRs amounting to $10.38 million