sebi:Order/AK/AS/2022-23/24643-24644

SEBI · SEBI · 2017-01-20 · Amit Kapoor, Adjudicating Officer

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Facts / Headnote

Violations established against both Noticees; monetary penalty imposed under Section 15HA of the SEBI Act

Provisions invoked

• s. 11B
• s. 11
• s. 15
• s. 19
• s. 12A
• s. 15H
• s. 15J
• s. 28A
• s. 18

Regulations

• Reg. 3
• Reg. 3(a)

Parties

• K Murugavel (Noticee No. 1)
• Aswin Logistic Ventures (Noticee No. 2)

Holding

The Adjudicating Officer held that Noticee No. 1 (K Murugavel), as Executive Director and signatory to the RHP/Prospectus of Midvalley Entertainment Ltd, violated Section 12A(a), (b) and (c) of the SEBI Act read with Regulations 3(a)-(d) and 4(1), 4(2)(a), (d), (e), (f), (k) and (r) of the PFUTP Regulations, and that Noticee No. 2 (Aswin Logistic Ventures) violated Section 12A(a), (b) and (c) read with Regulations 3(a)-(d) and 4(1) of the PFUTP Regulations. Penalties of Rs. 10,00,000 and Rs. 5,00,000 respectively were imposed under Section 15HA of the SEBI Act.

Full text

Adjudication Order in respect of two entities in the matter of Midvalley Entertainment Ltd Page 2 of 24 proceeds, utilization of IPO proceeds, disclosures made by MVEL in the IPO prospectus and dealings in the scrip of MVEL during the Investigation Period.

Adjudication Order in respect of two entities in the matter of Midvalley Entertainment Ltd Page 3 of 24 to decide the matter afresh in accordance with law after giving an opportunity of hearing to the appellant.

Adjudication Order in respect of two entities in the matter of Midvalley Entertainment Ltd Page 4 of 24 hearing was being adjourned to February 06, 2023. Thereafter, personal hearing in the matter was held on the scheduled date i.e. February 06, 2023. During the course of hearing, Adv Amrita Jain appeared on behalf of the Noticee and contended that even though the Noticee signed Red Herring Prospectus/ Prospectus, he was not aware of veracity of the contents therein, and was therefore, was not responsible for the same. She further contended that there has been an inordinate delay in the matter. Further, as requested, time till February 10, 2023 was granted to make written submissions as regards the matter, if any. Vide email dated February 09, 2023, Noticee made post hearing submissions in the matter.

Source: SecMarx — sebi:Order/AK/AS/2022-23/24643-24644. 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.