sebi:IVD-ID9/RDB/AO/DRK-AKS/EAD3-513-514/57-58-2014
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Facts / Headnote
Penalty of Rs. 10,00,000 each imposed on both noticees under Section 15HB of SEBI Act for violations of Regulations 60(4)(a) read with 8(2)(b) and 64(1) of ICDR Regulations; allegations regarding labour unrest and monitoring of utilization of issue proceeds held not established.
Provisions invoked
- s. 15
- s. 15H
- s. 372A
- s. 15J
Regulations
- Reg. 47
- Reg. 55
- Reg. 60(4)
- Reg. 6
- Reg. 16
Parties
- Shri Mohib Noman Khericha, Managing Director - Chartered Capital and Investment Ltd.
- Shri Manoj Kumar Ramrakhyani, Vice President & Company Secretary - CCIL
Holding
The noticees as Book Running Lead Manager violated Regulations 60(4)(a) read with 8(2)(b) and 64(1) of ICDR Regulations by failing to disclose Rs.7.28 crore inter-corporate loans, failing to update prospectus for board meeting of 12.09.2011, and relying on outdated plant and machinery quotations, and were each liable to Rs.10,00,000 penalty under Section 15HB.
Full text
Page 2 of 15 APPOINTMENT OF ADJUDICATING OFFICER 2. I was appointed as the Adjudicating Officer under Section 15 I of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as ‘SEBI Act’), read with Rule 3 of Securities and Exchange Board of India (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 15 HB of the SEBI Act the violation of Regulations 60(4) (a) read with 8(2)(b) and 64(1) of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 (hereinafter referred to as ‘ICDR Regulations’) alleged to have been committed by Shri Mohib Noman Khericha, Managing Director- Chartered Capital and Investment Ltd., Merchant Banker (hereinafter referred to as ‘CCIL’) and Shri Manoj Kumar Ramrakhyani, Vice President & Company Secretary - CCIL (hereinafter referred to as ‘noticees’) and the same was communicated vide proceedings of the Whole Time Member appointing Adjudicating Officer dated 11.05.2013.
Page 3 of 15 • Regarding ` 7.28 Crore given as an inter corporate loan to RDB Reality and Infrastructure Limited (herein after referred to as ‘RDBRIL’), the noticee submitted that in the Prominent Note no.15 of the Risk Factors on page xvii of the RHP / Prospectus, the details of transactions with related parties correspond to the period for which the financial information has been disclosed in the RHP / Prospectus which were based on the audited financial statements of the company. As per clause (2)(V)(E) of part A of Schedule VIII of ICDR Regulations, “the details of transaction by the issuer with group or subsidiary companies during the last year, the nature of transactions and the cumulative value of transactions” needs to be disclosed in the prominent notes to the risk factor which has been duly complied with.
Page 4 of 15 any doubt that noticees were neither informed by the issuer company about the board meeting & EGM of the company held on September 12, 2011 and September 28, 2011 respectively nor was there any public domain from where noticees would have got information about these meetings. Even Confirmatory order no. WTM/PS/06/ID-09/SEPT/2012 dated September 7, 2012, passed by WTM of SEBI confirms this fact.
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Source: SecMarx — sebi:IVD-ID9/RDB/AO/DRK-AKS/EAD3-513-514/57-58-2014. 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.