sebi:AO/SBM/EAD-1/328/2018
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Facts / Headnote
Penalty of Rs 5,00,000 imposed on the Noticee 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
- Vibhuti Muti Trade Private Limited
Holding
The Noticee violated Sections 11C(2) and 11C(3) of the SEBI Act by failing to comply with summons dated June 03, 2014 and July 02, 2014, and is liable to monetary penalty under Section 15A(a). A penalty of Rs 5,00,000 was imposed on Vibhuti Muti Trade Private Limited.
Full text
Page 2 of 16 associate/connected entities of the Merchant Banker associated with the 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 16 2010, transferred the entire amount to the account of Gulistan Vanijya Pvt. Ltd. (Gulistan) on the same day. It was further observed that the Noticee, Grafton, Mintage, Columbia, Albright and Gulistan were connected entities of CSL/CIL and these details were brought out in the IR.
Page 4 of 16 Vide summons dated June 03, 2014, Vibuthi was advised to inter alia inform its business, reasons for the above fund transactions with RKDL, Grafton and Albright. Upon non-receipt of any reply, vide summons dated July 02, 2014, Vibuthi was again advised to submit the information/documents sought vide our earlier summons. Vibhuti, vide its letter dated July 09, 2014, requested for extension by 15 days for the submission of its reply. However, Vibuthi has not provided the desired information/documents, thereby hampering the investigation (corresponding documents given at Annexure 35) Based on the above fund transactions, aforesaid connection of entities, RKDL's submission regarding siphoning off of IPO proceeds through Vibhuti, non-furnishing of information by Vibhuti, Grafton, Albright and Gulistan, transfer of funds among entities on the same day, the following is observed: i. Rs 2.25 crore has been siphoned off out of IPO proceeds from RKDL through Vibhuti and then through Grafton and Albright.”
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Source: SecMarx — sebi:AO/SBM/EAD-1/328/2018. 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.