sebi:AO/SBM/EAD-1/327/2018
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Facts / Headnote
Penalty of Rs 5,00,000 imposed on Grafton Merchant Private Limited under Section 15A(a) of the SEBI Act
Provisions invoked
- s. 15A
- s. 15
- s. 19
- s. 15J
- s. 11C(6)
- s. 12
- s. 11C
- s. 11C(2)
- s. 11C(3)
Parties
- Grafton Merchant Private Limited
Holding
Grafton Merchant Private Limited violated Sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with summons dated January 29, 2014 and June 03, 2014 and is liable to a monetary penalty of Rs 5,00,000 under Section 15A(a).
Full text
Page 2 of 18 IPO of RKDL viz. Comfort Securities Limited (hereinafter referred to as ‘CSL’). It was also observed during the course of investigation that CIL, which has been referred in the aforementioned news article, was a group/associate company of CSL.
Page 3 of 18 entities of CSL/CIL and the connections among the entities were also brought out in the IR. 4. It is further observed that an amount of Rs. 2.75 crores out of the IPO proceeds was transferred from the account of RKDL to the account of Gaungour Suppliers Pvt. Ltd. (Gaungour) on February 18, 2011. On the very same day, Gaungour had transferred Rs. 1 crore to the account of the Noticee and Rs. 1.80 crore to the account of Albright. Noticee, in turn, transferred the entire amount of Rs 1 crore to Scan Infrastructure Ltd. on the same day i.e. February 18, 2011.
Page 4 of 18 Transactions of the Noticee as mentioned in para 4 above 6. Specifically, the IR had made the following observations w.r.t the role of the Noticee in the matter of investigation of RKDL:- “Vibhuti (Kotak Mahindra Bank A/c no. 09612000007328) (Annexure 33) had received Rs 2.25 crore from RKDL (Axis Bank A/c no. 910020037719618) on Dec 29, 2010, out of IPO proceeds. On the same day, Vibhuti transferred Rs 1.25 crore to Grafton Merchant Pvt Ltd (Grafton) and Rs 1 crore to Albright Electricals Pvt. Ltd. On receipt of Rs 1.25 crore from Vibhuti on Dec 29, 2010, Grafton (Kotak Mahindra Bank A/c no. 03232000022442) (Annexure 34) transferred Rs 10 lakhs to Mintage Solutions Pvt Ltd (Mintage) and Rs 1.15 crore to Columbia Granites Pvt Ltd (Columbia) on the same day. It is further observed that Vibhuti, Grafton, Albright, Mintage and Gulistan are connected entities (connection basis given at Annexure 61). Vide summons dated Jan 29, 2014, Grafton was advised to inter alia inform
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Source: SecMarx — sebi:AO/SBM/EAD-1/327/2018. 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.