sebi:AO/SG-VS/EAD/87/2017

SEBI · SEBI · 2014-08-04 · Suresh Gupta, Adjudicating Officer

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Facts / Headnote

Violation found; penalty of Rs 6,50,000 imposed under Section 23E

Provisions invoked

• s. 21
• s. 23E
• s. 23
• s. 23J

Regulations

• Reg. 200

Parties

• M/s Plethico Pharmaceuticals Limited

Holding

The Noticee violated Clause 40A of the Listing Agreement read with Rule 19A of SCR Rules read with Section 21 of SCR Act by achieving 25% minimum public shareholding only in the quarter ending March 31, 2014 against the due date of June 03, 2013, and was held liable under Section 23E with a consolidated penalty of Rs 6,50,000 imposed.

Full text

Adjudication order in respect of M/s Plethico Pharmaceuticals Limited Page 2 of 16 “… 2. Financial Institutions namely SICOM and EXIM Bank exercised an option to invoke pledge of shares with them and thereby the promoters’ shareholdings got reduced from 77.77% to 73.68%. …” Vide its communication dated August 04, 2014, the Noticee further submitted that, as a result of invocation of pledge by the lenders namely EXIM Bank, SICOM Limited, Metrochem Industries Limited and Gateway Leasing Private Limited, promoters’ shareholding in Noticee reduced from 77.77% to 72.30% during the period of August 19, 2013 to July 09, 2014.

Adjudication order in respect of M/s Plethico Pharmaceuticals Limited Page 3 of 16 APPOINTMENT OF ADJUDICATING OFFICER 7. The undersigned was appointed as Adjudicating Officer (hereinafter referred to as ‘AO’) vide Order dated December 14, 2015 under section 23-I(1) of SCR Act and rule 3 of Securities Contracts (Regulation) (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 2005 (hereinafter referred to as ‘AO Rules’) to inquire into and adjudge under Section 23E of SCR Act for the alleged violation of provisions of Clause 40A of Listing Agreement read with rule 19A of the SCR Rules read with section 21 of SCR Act by the Noticee and the same was communicated to the undersigned vide communiqué dated May 16, 2017.

Adjudication order in respect of M/s Plethico Pharmaceuticals Limited Page 4 of 16 requested for additional time of 1 week to submit reply to the SCN and also sought adjournment of the hearing.

Source: SecMarx — sebi:AO/SG-VS/EAD/87/2017. 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.