sebi:EAD/KS/MKG/AO/95/2017-18
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Facts / Headnote
Adjudication proceedings disposed off without penalty; allegations not established
Provisions invoked
- s. 15A
- s. 15
- s. 2(72)
Regulations
- Reg. 13(3)
- Reg. 29(1)
- Reg. 29
- Reg. 13(5)
- Reg. 29(3)
- Reg. 29(4)
Parties
- IFCI Venture Capital Fund Limited
Holding
The allegation of violation of Regulation 29(1) read with Regulation 29(3) of SAST Regulations and Regulation 13(3) read with Regulation 13(5) of PIT Regulations against IFCI Venture Capital Fund Limited was not established, and the adjudication proceedings initiated vide SCN dated November 02, 2017 were disposed off without monetary penalty under Section 15A(b) of the SEBI Act.
Full text
Page 2 of 11 Order in the matter of Varun Industries Limited (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under Section 15A(b) of SEBI Act, the alleged violation of the provisions of law by Noticee.
Page 3 of 11 Order in the matter of Varun Industries Limited Company on August 22, 2012, triggered the disclosure provisions of PIT Regulations and SAST Regulations.
Page 4 of 11 Order in the matter of Varun Industries Limited iv) Noticee is law abiding citizen and has utmost respect and the dignity to the legal framework in which it operates. Noticee has a consistent track record of good compliance relating to the securities market. Noticee has not been found guilty of violating any provisions of companies act or SEBI Regulations or any other applicable Regulations or rules in force since its incorporation. v) Noticee further stated that the Company had provided credit facilities to VIL to the tune of Rs. 10.00 crore against pledge of shares by their promoters. Subsequently, due to non-payment of the dues of Noticee by the promoters, the Company had invoked the 17,50,000 pledged shares on April 12, 2012 and recovered amount Rs. 7,90,68,719/-. It is submitted that the purpose of obtaining pledge shares from the promoters/pledgers is to secure the repayment of the facility granted by Company. vi) Noticee added that as regards the disclosures requirements under Regulation 29 of SEBI(SAST) Regulations, 2011, It was of the genuine belief and opinion that the said requirement does not applies to the ‘Public Financial Institution’, in terms of the proviso to Regulation 29(4). There was no occasion for IFCI Venture to either wilfully or otherwise harbouring any attempts to disobey or violate the regulatory provisions. Being a Public financial Institution, IFCI Venture has the highest regards for statutory compliances and the regulatory stipulati
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Source: SecMarx — sebi:EAD/KS/MKG/AO/95/2017-18. 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.