sebi:AO/SBM/EAD-1/322/2018
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Facts / Headnote
Penalty imposed on the Noticee for failure to comply with summons issued by the Investigating Authority
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15J
- s. 11C(6)
- s. 11C
- s. 12
- s. 11C(2)
- s. 11C(3)
Parties
- Gaungour Suppliers Private Limited
Holding
The Noticee, Gaungour Suppliers Private Limited, violated sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with the summons dated January 29, 2014 and June 03, 2014 issued by the Investigating Authority, and a penalty of Rs. 5,00,000 was imposed under section 15A(a) of the SEBI Act.
Full text
Page 2 of 16 irregularities in the Initial Public Offering (hereinafter referred to as ‘IPO’) of RKDL for the period November 2010 to February 2011 and prima facie observed that an amount of Rs. 33.83 crores out of the IPO proceeds of RKDL was siphoned off by RKDL in connivance with the associate/connected entities of the Merchant Banker associated with the IPO of RKDL viz. Comfort Securities Limited (hereafter referred to as ‘CSL’). It was also observed during the course of investigation that CIL, which has been mentioned in the aforementioned news article, was a group/associate company of CSL.
Page 3 of 16 i. Rs 1 crore to Unisys Softwares and Holding Industries Ltd ii. Rs 50 lakh to Matrix Systel Pvt Ltd iii. Rs 5 lakh to J M D Sounds Ltd. iv. Rs 25 lakh to Rajan Sharma
Page 4 of 16 On receipt of Rs 1.8 crore from Gaungour, Albright made the following fund transfers on the same day, i.e., Feb 18, 2011: i. Rs 1 crore to Unisys Softwares and Holding Industries Ltd ii. Rs 50 lakh to Matrix Systel Pvt Ltd iii. Rs 5 lakh to J M D Sounds Ltd. iv. Rs 25 lakh to Rajan Sharma It is further observed that Gaungour, Grafton, Albright, Scan Infrastructure, Unisys, Matrix and J M D Sounds Ltd are connected entities (connection basis given at Annexure 61). Vide summons dated Jan 29, 2014, Gaungour was advised to inter alia inform its business activity, reasons for the above fund transactions with RKDL, Grafton and Albright. Gaungour, vide its letter dated Feb 13, 2014, requested for extension of time till middle of March 2014 for submission of reply. Upon non-receipt of any reply, vide summons dated June 03, 2014, Gaungour was again advised to submit the desired details information/ documents sought vide the earlier summons. However, Gaungour has not provided the desired details/ information/ documents, thereby hampering the investigation (corresponding documents placed at Annexure 46). Based on the above fund transactions, aforesaid connection of entities, RKDL's submission regarding siphoning off of IPO proceeds through Gaungour, non- furnishing of information by Gaungour, Grafton and Albright, transfer of funds among entities on the same day, the following is observed: i. Rs 2.75 crore has been siphoned off out of IPO proceeds from RKDL account through
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Source: SecMarx — sebi:AO/SBM/EAD-1/322/2018. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.