sebi:ORDER/GR/RR/2020-21/10162-10165
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Facts / Headnote
Penalties imposed on all four Noticees for violations of Section 12A(a), (b), (c) of SEBI Act read with PFUTP Regulations
Provisions invoked
- s. 15
- s. 19
- s. 12A
- s. 12
- s. 11(2)
- s. 15H
- s. 27
- s. 15J
- s. 28A
- s. 27(1)
- s. 65
- s. 2(60)
- s. 66(6)
Regulations
- Reg. 3
- Reg. 3(a)
Parties
- Peeyush Aggarwal
- Sanjiv Bhavnani
- Karun Jain
- Rajinder Singh
Holding
All four Noticees were held liable for acting as parties to a fraudulent, manipulative and deceptive GDR scheme by MPS Infotecnics Ltd, in violation of Section 12A(a), (b), (c) of the SEBI Act read with Regulations 3(a)-(d) and 4(1) of the PFUTP Regulations, 2003, and penalties were imposed under Section 15HA.
Full text
Adjudication Order in the matter of M/s. MPS Infotecnics Ltd. Page 2 | 26 bank based in Lisbon, Portugal, where the proceeds of GDR were deposited, delisting of GDRs on Singapore Stock Exchange and the termination of GDR facility by Depository i.e. Bank of New York Mellon. It was also observed that MPS had not disclosed an amount of US $ 8.88 million (as on March 31, 2008) lying in its account with BANCO as contingent liability in its financial statements for the financial year 2007-08. By not disclosing the contingent liability in its financial statements, MPS had not adhered to the provisions of Audit Standard (AS) – 29 issued by Institute of Chartered Accountants of India (ICAI).
Adjudication Order in the matter of M/s. MPS Infotecnics Ltd. Page 3 | 26 observed that the Noticee 1 to 3 were part of the Board meeting which approved the resolution dated October 19, 2007 and Noticee 4 executed the Account Charge Agreement with BANCO on behalf of Company. Therefore, its alleged that the Noticees had acted as parties to the fraudulent, manipulative and deceptive GDR scheme of MPS.
Adjudication Order in the matter of M/s. MPS Infotecnics Ltd. Page 4 | 26 under the provisions of Sections 15HA of the SEBI Act for the alleged violations specified at para 2 above. The aforesaid SCN was served upon the Noticees.
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Source: SecMarx — sebi:ORDER/GR/RR/2020-21/10162-10165. 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.